Acquisition

6 Apr 2005 07:00

Ascent Resources PLC06 April 2005 Ascent Resources plc Two Further European Exploration Joint Ventures Ascent Resources plc (Ascent) has entered into agreements for the acquisition of90% interests in two exploration joint ventures. The activities of the jointventures are in the Netherlands and the in the Molasse Basin of westernSwitzerland. The Dutch Joint Venture is with GTO and targets unappraised gas discoveries andexploration both onshore and offshore. GTO is an exploration company that hassuccessfully farmed out the four blocks it was awarded in the UKCS 21stLicensing Round to a consortium of three major UK independent oil companies.GTO and Ascent are to agree work programmes and budgets which for the first yearare estimated to be £50,000. Ascent will fund 100% of the costs for its 90%interest. Additionally bonuses to GTO payable in new Ascent Ordinary Shareswill be made according to the following milestones: Issue of exploration license £50,000 Issue of production licenses £100,000 Commencement of production £300,000 The shares will be issued at a price equal to the average of the closing shareprice for the six months prior to achievement of the relevant milestone. The Swiss Joint Venture with SEAG (Swiss Petroleum) targets three areas in thewestern part of the Molasse Basin. The first contains an unappraised oildiscovery made by BEB (ExxonMobil & Shell) in 1962 and the second and third eachcontains an unappraised gas discovery made by Elf Acquitane in 1972 and 1982.The first year's work programme includes seismic reprocessing and associatedgeological studies. Ascent will fund 100% of the costs through the drilling ofthe first exploration well for its 90% interest. Along with its Hungarian project, Ascent now has three European joint venturesin which it has 90% participation in each. Ascent also has its Gabon interestswhere the first well is now scheduled to be drilled in July of this year. The acquisition of the Swiss Joint Venture was made through the purchase ofBorona Holdings Limited, a company owned by Jeremy Eng. The company's soleasset is its interest in the Swiss Joint Venture and the consideration is 2million ordinary Ascent shares. On the basis of the mid-market price at theclose of business on 4 April 2005 of 5.25p, Borona Holdings Limited is valued at£105,000. As a consequence of this acquisition, Jeremy Eng is interested in2,000,000 Ordinary Shares of the Company, representing 1.3 per cent. of theissued share capital of the Company. The acquisition is a further step in Ascent's building of a portfolio ofmajority owned European oil and gas projects. Contact: Jeremy EngManaging DirectorTelephone: +44 20 7251 4905Facsimile: +44 20 8681 2680E-mail: jeng@ascentresources.co.uk David SteinepreisChairmanTelephone: +44 7913 402 727E-mail: dcs@ascentcapital.com.au This information is provided by RNS The company news service from the London Stock Exchange