Business
Acquisition
Acquisition.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n Ascent Resources PLC\n05 September 2007\n\n Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\n5th September 2007\n\n\n\n Ascent Resources plc ('Ascent' or the 'Company')\n\n To purchase 22.5% of Italian Drilling Contractor\n\n\n\nAscent Resources plc, the AIM traded oil and gas exploration and production\ncompany, is to acquire a 22.5% interest in Italian drilling contractor Perazzoli\nDrilling srl ('Perazzoli'). The acquisition will provide Ascent, through its\nsubsidiary Ascent Drilling Limited ('Ascent Drilling'), with priority access to\nPerazzoli's rigs, enabling it to more efficiently schedule the Company's\nexploration and appraisal drilling programmes on its European gas and oil\nportfolio, as well as additional revenue.\n\n\n\nAscent Drilling is to be owned 50% by Ascent Resources plc and 50% by Midnight\nEnergy Limited, a company controlled by Malcolm Groom, also a director of Ascent\nResources plc. Ascent Drilling will be acquiring 45% of the shares of Perazzoli\nand Ascent's interest will be in 22.5% of those shares.\n\n\n\nUnder the terms of the letter of intent signed between Perazzoli and Ascent\nDrilling, Perazzoli will acquire the 100 tonne Corsair 300 drilling rig from its\nparent company and is to order a WEI DS-205 200 tonne drilling rig for delivery\nin mid 2008. The Italian manufactured new build WEI rig is one of the latest\ngeneration of hydraulic rigs, which are low profile, designed for minimum\nenvironmental impact, and capable of drilling to over 3,600m. The Corsair rig,\nwhich has a drilling capability of over 2,000m, has been used continuously by\nAscent in Spain and Italy over the past 8 months to drill 3 wells and for the\ndeepening of the Anagni-1 oil discovery well.\n\n\n\nAcross Europe there is currently a shortage of drilling contractors. This is due\nto an increase in exploration activity over the past two years, including the\nGerman geothermal initiative, which has adsorbed drilling capacity. In Italy,\nthe shortage of properly certified drilling rigs is particularly severe. With a\n22.5% share in Perazzoli, Ascent will be able to prioritise its drilling slots\nas well as gain financially from the rental of the two rigs to third parties.\nPerazzoli has a strong order book and contracts with other operators in Italy\nwill see both rigs fully engaged for the foreseeabl...