Business
Spain Drilling Update
Spain Drilling Update.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n Ascent Resources PLC\n30 April 2007\n\n\n Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas\n\n\n30th April 2007\n\n\n Ascent Resources plc ('Ascent' or the 'Company')\n\n Results of Drilling Operations on Huermeces Licence Onshore Spain\n\n\nAscent Resources plc, the AIM-traded oil and gas exploration and production\ncompany, in conjunction with its 50% partner Tethys Oil AB, has completed the\ndrilling of the Hontomin-4 well in Spain. Following the analysis of the log\ndata, the well is now to be plugged and abandoned, with the drilling rig then\nreturning to Italy to continue the evaluation of the Anagni-1 oil discovery\nannounced in January.\n\n\nAscent Resources CEO, Jeremy Eng, said, 'Whilst the Hontomin-4 well could have\nprovided us with profitable incremental production because of its proximity to\nthe Ascent operated Ayoluengo oilfield, the relatively small reserves targeted\nby the well minimises the impact on the value of the Company's portfolio.\nElsewhere, our drilling campaign progresses; in Hungary drilling has restarted\non the first of two Nyirseg wells and in Italy, the Arrone-1 exploration well is\nplanned to be drilled immediately after the rig has completed its work on the\nAnagni-1 re-entry'.\n\n\nThe Hontomin-4 well was drilled to a depth of 1,610 metres and although the\ntarget Lower Jurassic clastics and the Triassic Carniolas carbonates were\npresent, they did not contain oil. The well was drilled into the underlying\nTriassic Keuper evaporites. Preliminary analysis suggests that the complexity\nof the faulting in the formations above the target has resulted in the lack of\nan adequate seal for the reservoir. The well, equally funded by Ascent and\nTethys, is expected to be on budget despite delays caused by extreme weather\nconditions with heavy snow on the location at the end of March and the failure\nof drilling contractor equipment, particularly the mud pumps.\n\n\nThe Ayoluengo oil field is producing at an average rate of over 110 barrels per\nday and production enhancement programmes on the field continue. In the nearby\nBasconcillos-H exploration permit, again in conjunction with Tethys, the planned\nre-entry of the Tozo 1 well, to test some 30 m of good hydrocarbon shows in the\nCretaceous Purbeckian sands, has been postponed for operational reasons.\n\n\nThe information co...