Ascent Resources PLC
11 December 2006
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
11th December 2006
Ascent Resources plc ('Ascent' or 'the Company')
Results of FGY-2 Well in Hungary
Ascent Resources plc, the AIM-traded oil and gas exploration and production
company, announces results from the second exploration well drilled in the
Nyirseg exploration permits of north east Hungary by PetroHungaria kft (Ascent
90%) with Canadian and Swedish partners DualEx Energy International Inc
('DualEx') and Petro Pequnia AB.
The Fehergyarmat 2 (FGY-2) well was spudded on November 20th 2006 and reached a
total depth of 1,100 meters in Lower Pannonian clastics on December 4th 2006.
Testing of the primary target at a depth between 607 meters and 671 meters (net
54 meters), demonstrated the presence of a good quality reservoir interval in
which the mobile phase was water not gas. However, this result, in conjunction
with the successful testing of the gas discovery drilled by the PEN-104 well
(announced on November 14th 2006), has provided the parties with sufficient
confidence in the geological model that both DualEx and Petro Pequnia have
exercised their option to continue exploration drilling with two contingent
exploration wells envisaged under the farm-in agreement. Moreover, close to
FGY-2, another location FGY-1 is being permitted for future drilling and this
well will target the same Pannonian section but in a structurally more
favourable location.
The first option well, Pen-102, an appraisal of a gas discovery made in 1983,
which was not put on production is 4.4 kilometres east of the PEN-104 discovery.
The second option well, VAM-1, tests an exploration prospect in the Vamospercs
area 18 kilometres to the southwest of the Peneszlek field. Under the terms of
the drilling contract, the same drilling rig is available for these two option
wells and operations could resume again in March 2007. As with the previous
wells, DualEx will pay 75% and Petro Pequnia 4% of the costs of drilling and
this will earn a 37.5% and 2% working interest in the two Nyirseg exploration
permits which total 2,483 square kilometres.
Ascent's Managing Director Jeremy Eng said, 'Despite not having drilled a second
discovery, our understanding of this area is much improved with the data we have
acquired during this drilling programme. The previous test wells were drilled
over 20 years ago and with technology now far more sophisticated, we look
forward to further success with the two option wells.'
DualEx's CEO Garry Hides commented, 'Although we would obviously have preferred
a discovery at FGY-2, these results in no way diminish our enthusiasm for the
exploration potential of the block, nor the follow-up development opportunities
resulting from the PEN-104 discovery.'
The information contained in this release has been reviewed and approved by Dr
Eloi Dolivo, Ascent's Exploration Manager and Dr Clive Ninnes, Ascent's
Engineering Manager. Dr Dolivo (member of the AAPG) and Dr Ninnes (member of
SPE) have 26 and 25 years experience respectively in the evaluation of
hydrocarbon resources.
* * ENDS * *
For further information visit www.ascentresources.co.uk or contact:
Jeremy Eng Ascent Resources plc Tel: 020 7251 4905
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400
Notes
Ascent Resources has a portfolio of over 20 oil and gas projects across six
countries in Europe. The projects are onshore in Italy, Switzerland, Hungary,
Spain and Romania and offshore the Netherlands. Ascent is drilling a programme
of six exploration wells, at least two in Hungary and two each in Spain and
Italy. In 2007, high impact gas exploration wells are also planned in the Po
Valley in Italy and in Switzerland. Ascent will participate in up to four
non-operated exploration wells in the Aurelian Oil & Gas PLC led project in
Romania (5% Ascent) where gas is produced from the Bilca development. Ascent
also produces a hundred barrels of oil daily from Spain's only onshore oilfield.
With the strong and stable European gas market, Ascent's portfolio favours gas
over oil and, with the exception of the Netherlands, all of its projects are
located onshore where operating and development costs are substantially lower
than they are offshore.
Ascent's directors are specialists in the oil and gas business and each director
has expertise and experience in commercialising energy assets. The Company's
Board and Executive Management provide the basis upon which Ascent can
accommodate the rapid growth that the Company plans in the short term.
This information is provided by RNS
The company news service from the London Stock Exchange
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