Ascent Resources PLC
24 August 2007
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
24 August 2007
Ascent Resources plc ('Ascent' or the 'Company')
Italian Operations Update
Overview
• Arrone-1 well indicated strong gas shows during drilling but following
log results it is not deemed to be commercial
• Production test at Anagni-1 sustained at a rate of 200 barrels per day
confirms the excellent productivity of the formation
• Results of the offset well seismic at Anagni-1 confirm significant
up-dip potential
Ascent Resources plc, the AIM traded oil and gas exploration and production
company, has completed drilling the Arrone-1 well in the Fiume Arrone
Exploration Permit, to the west of Rome, and continues testing operations on the
Anagni-1 oil discovery well in the Frosinone Exploration Permit to the south
east of Rome.
The Arrone-1 well has been drilled to a total depth of 894m, The Base Pliocene
Unconformity, which was the target for the well, was penetrated at 820m and
drilling continued into the underlying Miocene section. Despite strong gas shows
during drilling of the Pliocene section, which necessitated a 20% increase in
drilling mud weight, the logs showed that there were only thin, low porosity
sand units that would not be capable of commercial production at this location.
The partners in the project, Italmin Exploration (14%), Oracle Energy (20%), JKX
Italia (10%) and Ascent's wholly owned subsidiary Ascent Resources Italia (56%
and operator),have therefore agreed to plug and abandon the well.
The production test of the Anagni-1 well continues with approximately 20% of the
lost drilling fluid so far recovered. Samples of fluid taken a week ago, and
analysed in a third party laboratory, show traces of oil in the recovered fluids
up to 0.5% by volume. The well, which is equipped with a pump jack
('nodding-donkey' pump), has been producing back the drilling fluids at a
sustained rate of circa 200 barrels (31.8 cu.m) per day. The preliminary results
of the offset well seismic (VSP survey) have been received and these confirm
that the well was drilled on flank of the structure with the shallower part to
the east.
Ascent's Managing Director Jeremy Eng said, 'The result of the Arrone well was a
disappointment as during drilling all the indications were very good; there was
just a lack of good quality reservoir sands. However, at Anagni, all the
information that we have so far is encouraging. The results of the offset well
seismic confirm that we drilled on the flank of the structure, which gives
significant up-dip potential and the sustained 200 barrels per day production
rate confirms the excellent productivity of the formation.'
The information contained in this announcement 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) both have 26 years experience in the evaluation of hydrocarbon resources.
This announcement is timed for simultaneous release of information in UK and
Canada.
* * 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
Notes:
Ascent Resources has a portfolio of over 20 gas and oil projects across six
countries in Europe. The projects are onshore in Italy, Switzerland, Hungary,
Spain, Slovenia and offshore Netherlands. The Company operates Spain's only
onshore oilfield where production currently averages over 110 barrels of oil per
day. With the stable European gas market, Ascent's portfolio favours gas over
oil. 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.
This information is provided by RNS
The company news service from the London Stock Exchange