Business
Farm out Agreement and Update
Farm out Agreement and Update.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n Ascent Resources PLC\n23 August 2006\n\n\n Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\n23rd August 2006\n\n Ascent Resources plc ('Ascent' or 'the Company')\n Farm out and Drilling Operations\n\n\nAscent Resources plc, the European focused oil and gas exploration and\nproduction company, through its 90% owned Joint Venture PetroHungaria kft, has\nentered into a farm-out agreement with DualEx Nyirseg Inc. ('DualEx'), a wholly\nowned subsidiary of DualEx Energy International Inc. of Canada (TSX-V: 'DXE').\nThe companies will jointly explore and develop the hydrocarbon resources of the\nNyirseg Del and Nyirseg Szatmar exploration permits in the Pannonian Basin in\nNorth Eastern Hungary.\n\nUnder the terms of the Agreement, DualEx will reimburse some of the historical\nexploration costs and fund 75% of the costs of drilling two wells to earn a\n37.5% working interest in 45% of the area of the Exploration Permits. DualEx\nalso has the option to participate in two further wells to earn a 37.5% working\ninterest across the whole of the two permits.\n\nThe first well, Peneszlek-104 (PEN-104) is a re-appraisal well for the Peneszlek\nfield and has a secondary target in Pannonian sandstone formations. The second\nwell, Fehergymat-1 (FGY-1), targets a gas prospect also in the Pannonian\nformations. The FGY-1 well with a planned depth of 1,100m is to be drilled\nimmediately after the PEN-104 well, scheduled to commence drilling in September\nto a depth of 1,350m.\n\nThe Peneszlek field produced a total of 4.8 Bcf of gas from 1983 to1989 from six\nwells. The gas reservoir is in Miocene tuff sediments. Following re-mapping\nusing the seismic data acquired in 2005 by PetroHungaria, it is anticipated that\nthe remaining reserves of this field are substantially more than previously\nestimated and redevelopment studies are on-going. During the 1980's two\nsatellites of the Peneszlek field were discovered and tested gas but were not\nput on production at that time.\n\nThe first optional well is planned as an appraisal of one of these Peneszlek\nsatellite discoveries; the second optional well targets a seismically defined\n(AVO) prospect in the Pannonian sandstones in the south of the permits.\n\nAscent has also received a Letter of Intent from a Swedish Company PetroPequnia\nAB which seeks to enter in to an agreement ...