Business
Italian Farm-in
Italian Farm-in.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n Ascent Resources PLC\n06 December 2007\n\n Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\n\n\n6th December 2007\n\n\n\n Ascent Resources plc ('Ascent' or 'the Company')\n\n Italian Po Valley Gas Project Farm-Out Update\n\n\n\nAscent Resources plc, the AIM-traded oil and gas exploration and production\ncompany, has entered into an agreement whereby Otto Energy Limited ('Otto') will\nparticipate in the farm out of a 50% interest in the 828 sq km Cento and\nBastiglia exploration permits in the Po Valley of Italy. The first of two wells\nis scheduled to be drilled in the second half of 2008 and targets the Gazzata\nprospect, which has a third party estimated recoverable reserve of over 100 Bcf\nof gas.\n\n\n\nThe new agreement supersedes the farm-in agreement with Deltana, previously\nannounced on 1 August 2007. The terms remain essentially unchanged with Deltana\nand Otto paying a contribution towards the project back costs and the purchase\nof existing seismic data. Deltana and Otto will also pay 100% of the cost of\nthe first exploration well and 100% of the cost of a second exploration well if\nthe first well discovers commercial quantities of gas. The future value of the\nfarm-in package amounts to circa €13 million.\n\n\n\nAscent Managing Director Jeremy Eng said, 'The latest phase of exploration in\nthe Po Valley uses state-of-the art techniques in seismic processing, which\nstill further improves the already impressive success rate in gas exploration in\nthe region. The Cento and Bastiglia permits, which are among the largest in the\narea, have multiple exploration targets as well as established infrastructure\nclose to hand. This farm-out again confirms the strength of Ascent's strategy\nand demonstrates the depth of the Company's portfolio of European projects.'\n\n\n\nThe Po Valley, which extends across the northern part of Italy from Turin in the\nwest to Venice and Ravenna in the east, is the one of the most productive areas\nfor gas and oil onshore Europe. Since the 1950s, over 130 fields have been put\non production. Ascent's exploration permits are centrally located near the\ncities of Modena to the south, Mantova to the north and Bologna to the south\neast.\n\n\n\nOtto Energy Limited is an Australian public company with projects in Turkey,\nArgentina and the Philippines. The division of ...