Business
Award of exploration licences
Award of exploration licences.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n Ascent Resources PLC\n16 October 2006\n\n Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\n\n\n16th October 2006\n\n\n\n Ascent Resources plc ('Ascent' or 'the Company')\n\n North Sea Licences awarded by Dutch Government\n\n\n\nAscent Resources plc, the AIM traded oil and gas exploration and production\ncompany, through its 90% owned joint venture (JV) with GTO Limited, has been\nawarded four exploration licences covering a total area of 795 square kilometres\nby the Dutch Government.\n\n\n\nThe P4, M8, M10 and M11 licences were identified by the JV following a technical\nevaluation by GTO and Ascent. The technical work focussed on the newly\nrecognised Carboniferous exploration plays as well as the traditional\nRotleigendes plays. Gas was discovered within the M11 permit (M11-01) in 1982\nfollowing a drill programme by NAM, and was tested at a rate of 6,600 cu.m per\nday (233 Mscfd) from the Upper Slochteren sandstones of the Rotliegendes (as\nreported by TNO on behalf of the Dutch Ministry of Economic Affairs). In the\narea of M8, M10 and M11 a 3-D seismic survey is due for release next month and\nthis will form the basis for the new exploration effort.\n\n\n\nTo assist in the funding of this exploration, Ascent has agreed a farm-in from\nCanadian company McLaren Resources Inc ('McLaren'), whereby McLaren will pay\n62.5% of the JV costs for a 45% beneficial interest. Also, under the terms of\nthe GTO JV agreement, GTO will receive 814,941 Ordinary Ascent Shares of 0.001p\nat a price of 11.78p (being the average price over the past six months).\n\n\n\nAscent Managing Director Jeremy Eng said: 'The award of these licences in the\nNetherlands adds a new dimension to Ascent. These are the Company's first\noffshore assets and they are in the shallow waters of the southern North Sea.\nThe exploration targets are gas reservoirs and the M11 block already contains a\ngas discovery. With Wintershall, Gaz de France and NAM (Shell-ESSO) all\noperating nearby, it is our expectation that the gas potential of this area will\nbe developed quickly.'\n\n\n\nAdditionally, following the Letter of Intent from Swedish Company PetroPequnia\nAB announced on 23rd August 2006 regarding the exploration and development of\nthe hydrocarbon resources of the Nyirseg Del and Nyirseg Szatmar exploration\npermits in north-eastern Hunga...