Re Joint Venture

10 Mar 2005 07:00

Ascent Resources PLC10 March 2005 Joint Enterprise in Hungary Ascent Resources plc (Ascent) are pleased to announce that it has entered intoan agreement for a Joint Enterprise in Hungary initially covering twoexploration permits, Nyriseg-South, covering an area of 927 km2, andNyirseg-Szatmar, covering an area of 1,556 km2 in north eastern Hungary. These two exploration permits contain, in addition to the fallow Peneszlek gasfield, a number of wells that have produced gas. The Joint Venture Company will be owned 90% by Ascent and 10% by Geomega. Geomega is a Hungarian company whose principals have many years experience inHungarian oil and gas exploration and the company was formed to exploit theopportunities that have become available since 1996. Geomega is the registeredtitleholder of the two exploration permits. Ascent will pay the costs of the on-going geological, geophysical andengineering evaluation, the costs of the work commitment for the firstexploration term and will issue one million options to the principals of Geomegaexercisable at 5p for a period of four years from issue. Additional tranches ofshares up to a maximum of 1.5 million will be issued on confirmation of provengas reserves of up to 2 billion cu.m (approx. 70 Bcf). The Joint Venture will also pursue other hydrocarbon exploration and productionopportunities in Hungary including new exploration permit applications and coalbed methane 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