Business
Acquiring interest in Jolly R
Acquiring interest in Jolly R.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n RNS Number : 0988T Ascent Resources PLC 01 June 2009 \n \nAscent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\nAscent Resources plc ('Ascent' or 'the Company')\nTo be assigned an interest in the Jolly Ranch Project in Colorado\n\nAscent Resources plc, the AIM-traded oil and gas production and exploration company, through its asset management business with San Severina Holdings SA ('San Severina'), the Swiss based investment company, is to be assigned an interest in the Jolly Ranch Project ('the Project'), an oil and gas development in Colorado in the United States of America. San Severina has agreed to purchase a 20% interest in the Project and will transfer 20% of this interest (a 4% interest in the Project) to Ascent on completion, which is expected to occur during June 2009. The other partners in the Project are the operator, Running Foxes Petroleum Inc ('Running Foxes'), and Nighthawk Production LLC, a wholly owned subsidiary of Nighthawk Energy plc ('Nighthawk'), each of whom will retain a 40% interest. \n\nThe Jolly Ranch Project is located in the south eastern part of Colorado in Lincoln and Ebert counties and is in the southern part of the Denver Basin. Hydrocarbon production is from multiple oil shale reservoirs as well as from both shallow and deep conventional reservoirs. 12 new wells have been drilled by Running Foxes over the last year and the 10 deep wells have all tested oil. Two shallow wells, which target the shallow Codell Cretaceous sands, have not yet been completed.\n\nJolly Ranch is the central part of the Project where some 50,000 net acres has been leased and where all the 12 wells were drilled. San Severina will pay an initial consideration of US$21.9 million and has an option to extend its participation into the other project areas at the time additional wells are drilled into each of six project extension areas. Runni...