.

Next scheduled news should be the Wednesday morning (Tuesday late night UK time) Otto Energy drilling update.

Soon will know if this is a company making well for Ascent, or not.

pp heads or tails?

Who knows, its exciting as the upside is massive but the downside limited as they still have Hungary, Switzerland, Jolly Ranch, the SS agreement, Anagni Italy and so much else.

Whatever happens, massive rise, no rise or big fall, I shall beep on holding :)

News out, Ascent have drawn down on 1.28m pounds by issuing 17m shares to GEM.

This explains the selling over the past couple of weeks, it was GEM pre-selling these and shorting, to keep the price low.

Very sensible move to do this ahead of the Gazatta result, simply put the Gazatta result is not a certainty and by now having cash in hand to cover all their upcoming commitments (Hungary, Anagni-2 and Slovenia) they do not have to worry if Gazza is dry.

With the seller (GEM) now clear, the price should be able to pick up traction and move ahead, and if Gazatta is not a dry well, we could see some big moves upwards.

As Ascent now has cash in hand, can cover all the upcoming costs they need to pay for, has SS deals ongoing, has Hungary production and very soon we will not only know the Gazatta result, but will soon start drilling at Anagni-2.

Fingers crossed and good luck all.

"Ascent Resources plc, the AIM traded oil and gas exploration and production company, has, further to the announcement of 14 May 2009, issued 17,350,000 new ordinary shares of 0.1 pence each ('Ordinary Shares') to GEM Global Yield Fund Limited ('GEM') as part of a draw down on the equity line of credit provided by GEM. The price of the subscription is 7.4 pence per Ordinary Share, being a discount of 9% to the average closing price over the past 15 trading days.

Application will be made for the shares to be admitted to trading on AIM on 12 June 2009. Following the issue of the new Shares the Company's issued share capital will consist of 322,132,042 Ordinary Shares with voting rights."

The above is only part of a drawdown facility, so it is not necessarily the final dip in the sp, but at least we know that 7.4p is the current base.

Drill speed has slowed down a lot, given they are at 2219m, which could be seen as a positive as they may now be into "reservoir territory". It nothing was there they would have been well finished to TD and logged already, some would say.

Could be news later this week after wireline and logging once they decide to stop drilling and check.


http://www.asx.com.au/asxpdf/20090610/pdf/31j01lg40bzlmy.pdf

...........Italy Cento Bastiglia Permits
The Gazzata 1 exploration well was drilling at a depth of approximately 2,219m on the evening of 9 June 2009. Drilling will continue today until a minimum depth of 2,300m or until an appropriate geological horizon is reached. An electric logging evaluation program will then be run. The results of the interpretation of wireline logs will be reported once available............

For me, this is quite positive.

Firstly, they are committing to wireline logging in advance, which indicates something of interest may be found that needs to be logged. They have already logged to 1750m earlier (indicating potentially something interesting higher up), so it will only be 1750m to 2300m that needs logging when they stop.

Secondly, the drill after doing 200m a day is now very very slow, indicating they have some feedback and are going slow so as not to damage the well bore. Primary target was said to be circa 2100m, so the very slow progress in terms of depth could indicate its good.

Thridly, no talk of TD, only talking of going to at least 2300m or until a major geologic change, and then running wireline. This means we may get the (what I am hoping for) notice that the well will be deepened to 3000m TD instead of 2400m initial plan.

Could be a very happy Monday next week.

All in all it tends to point to the potential for some good news to be coming soon, but as they say, thats only IMO and always DYOR !

Worth reading this thread on TMF to get differing opinions.

http://boards.fool.co.uk/Message.asp?mid=11554792&sort=whole

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RNS Barclays increases shareholding to 6%.

If its going to be a P&A and no good there should be news tomorrow, at some time during the day or after trading stops.

No news tomorrow could and possibly should be seen as positive.

There is another line of thinking that some are taking, and that is that the Otto announcement on Wednesday is rather too "undefined". Saying "we will keep drilling until a minimum of this OR until we decide to stop at some undefined geologic point

Are they going straight to 3000m (hence why the large casing size earlier and also early logging) owing to finding gas already.

They could not announce going to 3000m as everyone would take a very good guess this means gas found already (as they said that they would only go deeper if they found gas higher up), so they come up with this "drill until we stop" to cover that they are in fact drilling all the way down to 3000m now, and then will then log and then test.

Anyway, could be a P&A tomorrow, but if not, then perhaps the next update will be Wednesday from Otto, and perhaps they have indeed gone straight to 3000m depth (ie hit gas already).

No news in this case will likely be good news, and the longer there is no news, the gooder the good news might be.

I myself do not go with the direct to 3000m idea, although there may be some truth in it in terms of the casing size used and the fact that they said "an approproiate geologic horizon" but it would not be directly directly as such.

This "approprate" indicates to me that they are going to log and case again, before going deeper still. This is in itself, if its true, good news, as it would confirm they have found gas earlier down. So it could well be that they are looking for a suitable point at which to set casing too, before they log and then go deeper again.

This is why they could not say exactly when they would stop drilling to log again, they are looking for a suitable point in which to set casing to, before going deeper again.

As a decision to go deeper is a defacto confirmation of gas found earlier, I think any news of deepening, along with logs results and news of "potential zones of interest" will all come at once.

That is if, of course, we do not get the dreaded Friday P&A RNS sometime between 7am and 5pm today.

How correct this is who knows, but its worth throwing into the information ring at this stage with depth of 2219m earlier on Tuesday evening.

http://www.ottoenergy.com/IRM/Company/ShowPage.aspx?CPID=1318&EID=10000000&PageName=StockAnalysis Special Report - OEL

...................Otto is embarking on an active exploration phase, with the first cab off the rank being an A$8 million well in Italy’s Po Valley, where the Gazzata well is set to target an estimated 150 Bcf of gas during late May and June. Otto will fund 100% of this well as part of a programme to earn a 50% interest in the permit. Drilling at Gazzata has a main target zone at around 1,800 metres and if it has success at that level, drilling will continue to 3,000 metres to test a secondary target. StockAnalysis estimates that discovery of 130 Bcf of gas would be worth 20 cps to Otto and would open up further opportunities for the company at additional prospects on its permit. The gas price in Italy remains high, but
the slow pace of development approvals can make this region a frustrating place for oil & gas companies. Otto is well positioned in the Po Valley, with several operating gas fields surrounding its permit, excellent infrastructure and strong gas prices............

pp if they have found gas it is only a question of how much.

But they may not have too.

I will be happier when its 6pm and there has been no RNS today and speculation swings from negative (its a duster) to positive (their drilling deeper and logs have looked good).

Time will tell. I wish I knew, but nobody knows and the market also does not know, which is why volume is tiny and we are just seeing the short term traders selling ahead of the weekend (so far)

Read final results RNS.

Final results out.

http://www.investegate.co.uk/article.aspx?id=200906121330018324T


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Unlikely perhaps they would release Finals and then P&A Gazatta. They could easily have waited until next week and released the final results with any Gazatta P&A.

So things are looking more positive I think. Good luck all. Lets hope Gazatta is the "company maker" that it could be.

Having acknowledged to myself I have been lazy and making mistakes listening to others I have gone over the Gazatta stuff in detail, and made a post on TMF.

http://boards.fool.co.uk/Message.asp?mid=11581968

.

I think next news is Otto on Wednesday, as per the near final paragraph of this post, but then I am long and have rose tinted specs on with regards to AST, do DYOR !

Top post Proselenes. Let's just hope that this is going to be a week to remember - for all the right reasons.