14th Nov 2006 07:02
Ascent Resources PLC14 November 2006 Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas 14th November 2006 Ascent Resources plc ("Ascent" or "the Company") Gas Discovery in Hungary Ascent Resources plc, the AIM traded oil and gas exploration and productioncompany, announces its first gas discovery following the drilling and testing ofthe PEN-104 well in Peneszlek gasfield in Hungary. The gas flowed from apreviously untested reservoir horizon and validates the Company's geologicalmodel and seismic interpretation of the area. This in turn increases theCompany's confidence in the target horizons for the next wells to be drilled inthe Nyirseg exploration permits. The Company's 90% owned subsidiary PetroHungaria kft, with partners DualEx ofCanada (37.5%) and Petro Pequnia of Sweden (2%), drilled and tested twointervals in the PEN-104 well. The first interval did not flow, with some waterand gas in the tubing, but the second test produced gas at a restricted rate of96,000 cu.m/day (3.4 MMscfd; 600 boepd). The gas rate was restricted because thevery high permeability of the formation caused a high flowing pressure (91barg), which reached the maximum pressure rating of the separator. The drawdownat this rate through an 8mm choke was 3 barg and the Mining Regulations precludeby-passing the separator under these conditions. Ascent's Managing Director Jeremy Eng said: "This is the first well drilled inthis area for over 20 years and it is encouraging that the well has made a newgas discovery. The test proves our geological model and underlines the largepotential of the region. Together with our partners, we have already chosen fourother drilling locations. The choice of these locations is based on modernseismic techniques and we feel that the methodology has been significantlyde-risked with the positive results of the PEN-104 well." The PEN-104 is situated on exploration permits that cover an area of 2,483 sq kmin Eastern Hungary adjacent to the Romanian border. It is a re-appraisal wellwithin the once productive Peneszlek gasfield and targets gas reservoirs in thePannonian Clastics and the underlying Miocene Tuffs. Once the PEN-104 well hasbeen suspended for future production, the rig will be moved to the northern partof the permits to drill the Fehergyarmat 2 (FGY-2) well, which is scheduled tocommence next week. PEN-104 Testing: Depth (m) Formation Recovery Top BottomTest 1 1,262 1,285 Miocene Tuff Some water with gasTest 2 1,064 1,068 Pannonian Clastics Dry gas at 3.4 MMscfd Glossary of Terms: cu.m/day cubic meters of gas per day MMscfd millions of standard cubic feet of gas per day boepd barrels of oil equivalent per day barg pressure bar gauge The information contained in this release has been reviewed and approved by DrEloi Dolivo, Ascent's Exploration Manager and Dr Clive Ninnes, Ascent'sEngineering Manager. Dr Dolivo (member of the AAPG) and Dr Ninnes (member ofSPE) have 26 and 25 years experience respectively in the evaluation ofhydrocarbon 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 sixcountries in Europe. The projects are onshore in Italy, Switzerland, Hungary,Spain and Romania and offshore the Netherlands. Ascent is drilling a programmeof six exploration wells, at least two in Hungary and two each in Spain andItaly. In 2007, high impact gas exploration wells are also planned in the PoValley in Italy and in Switzerland. Ascent will also participate in up to fournon-operated exploration wells in the Aurelian Oil & Gas PLC led project inRomania (5% Ascent) where gas is produced from the Bilca development. Ascentalso 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 gasover oil and, with the exception of the Netherlands, all of its projects arelocated onshore where operating and development costs are substantially lowerthan they are offshore. Ascent's Board of Directors are specialists in the oil and gas business and eachdirector has expertise and experience in commercialising energy assets. TheCompany's Board and Executive Management provide the basis upon which Ascent canaccommodate 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 ExchangeRelated Shares:
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