.

Interesting news last week. The share in the drilling company was never valued as anything by the market, so I fully agree with them to monetise the asset, far better money in the bank than having an asset the market does not care for, whilst also retaining the benefits for some time to come.

Also interesting is that the Ascent director took 800K sterling of Ascent stock. A rather large director buy, hidden in that news.

He must be confident going forward to take stock in place of cash !!

The news :

http://www.investegate.co.uk/Article.aspx?id=201002220700254474H

Ascent Resources PLC
Disposes of interest in Peraz
RNS Number : 4474H
Ascent Resources PLC
22 February 2010


Ascent Resources plc, the AIM-traded oil and gas exploration and production company, has agreed to sell a 45% interest in Italian drilling contractor Perazzoli Drilling srl ('Perazzoli') for a cash consideration of €1.85 million. The Company's original interest was purchased to provide priority access, and ensure optimal contract terms for drilling services. These advantages will be retained through a five year service alliance with Perazzoli, which provides for a 30% discount on €10 million of drilling services to Ascent and first call on uncommitted drilling units. Perazzoli owns three drilling units including a state-of-the-art HH-200 unit which provides low environmental impact drilling capability.

The Company's original 22.5% interest in Perazzoli was held through its 50% owned subsidiary, Ascent Drilling Limited ('Ascent Drilling'), which was owned jointly with Ascent Director Mr Malcolm Groom. To facilitate the transaction, Ascent agreed to purchase Mr Groom's 50% interest in Ascent Drilling and therefore a further 22.5% interest in Perazzoli by placing to him, 15,529,981 Ascent shares, providing Ascent with a 45% interest in Perazzoli. These shares, when issued, will be priced at 5.105p each representing a 9% discount to the 15 day average trading price preceding 26 January 2010, which is the pricing mechanism used for Ascent's Equity Line of Credit with GEM Global Yield Fund.

Jeremy Eng Ascent's Managing Director said, "The sale of our interest in Perazzoli, whilst retaining the benefits that the ownership of a minority interest brought, is an excellent outcome for Ascent. Perazzoli is aiming to expand its operations and will therefore require additional funding which, given the intensive work programmes being conducted on our portfolio of oil and gas assets, would I believe, not be the best use of our shareholders' funds.

"This transaction allows us to retain access to Perazzoli's drilling equipment with attractive discounts on its services and provides additional funds for use in developing our projects. Furthermore, we were pleased that Mr Groom has demonstrated his sustained confidence in Ascent, having agreed to sell his interest in Ascent Drilling in an all share agreement."

As Malcolm Groom is a Director of Ascent, the purchase of his share of Ascent Drilling is a related party transaction. The Board of Directors of Ascent, with the exception of Malcolm Groom, having consulted with the Company's Nominated Adviser, Astaire Securities Plc, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

The purchase of Mr Groom's 50% interest in Ascent Drilling is conditional on the relevant resolutions being duly passed by Shareholders at an Extraordinary General Meeting, scheduled for 12 March 2010 to authorise the transaction. Following completion, Mr Groom will be interested in 17,527,686 shares of Ascent representing 3.40% of the total issued shares.

In the most recently published audited financial statements of the Company, being for the year ended 31 December 2008, Ascent reported a share of profit from Perazzoli of 88,000. At that time the carrying value of the Company's investment was 1.3 million. As disclosed in the Notes to the Financial Statements and the Accounting Policies of the Company, both values reflect a 45% interest in the investment.

Ascent is proposing to convene an Extraordinary General Meeting to, inter alia, approve the purchase of Mr Groom's 50% interest in Ascent Drilling on 12 March 2010 at 11.00am at the offices of Sprecher Grier Halberstam LLP, 5th Floor, One America Square, Crosswall, London EC3N 2SG.

The circular convening the Extraordinary General Meeting will be sent to Shareholders shortly, and a copy will be available on the Company's website www.ascentresources.co.uk.

* * ENDS * *

Interesting news from LGO (minor partner in Hungary).

However, I think this "divestment" is more to do with ongoing cash spend in Hungary, PEN-101, 106 and then 104AA workover.

I would guess LGO are short of cash and need to halt outflow, so far easier to stop all Hungary work and conserve the cash than pay up for the ongoing PEN-101 and then PEN-106 and also the 104AA workover.

How much did they sell it for ? did they give it away ? The lack of details suggests it simply a reason to stop spending money there IMO.

Wonder if the other partners get it all for free, would like to see AST boost their percentage.

Perhaps the sale of the drilling rig company share is to be ready to take on more Hungary.

From III post :


Spoke with AST
Randy121

So I spoke with the FD today as J Eng was not in the office.

Essentially I asked a few questions on differing topics, and I can summarise the answers for you below......

Newsflow

I queried why we had no news as yet, and asked if the news on hold pending the result of the EGM. SC categorically stated that they would not put news on hold for the EGM, and once they rec'd full news they would report on it. As such, he cleared up the fact that 101 and F1 news had not yet been rec'd.

SC stated that AST get frustrated that people expect news, and if you looked at the previous RNS', then you would note that the month mentioned in the RNS' is only just up, and that they expect results soon.

As such, no news at present means no news! I said what aboout the 14 RNS' before end of Q1, SC replied that in that case it is likely to be a busy March / April.


Leni

As for the LGO RNS, SC stated that if LGO wanted to ditch their holding in the PEN licence that should AST be able to pick it up for nothing, then they would be very happy. The talk about non material return was confusing given that LGO could have had Pen105 producing and a share of that revenue. Therefore, I am assuming it has all come down to financial difficulties. So we will only get the full picture once AST annouce new equity structures, and hopefully 101 hits - then LGO will look very silly if things go in our favour.

F1

As for F1 - I asked why we were still awaiting news on this. SC stated that essentially they want to get the cores to make a call on whether to drill or not, as this would effectively give you very good confidence as to whether to drill or not (more so than seismic). So when the F1 RNS comes it will effectively be no oil / or oil staurated cores. The RNS will also state the intention to drill or not...So we should hope for oil staurated cores and an intention to drill = happy days for us!!!)....SC stated that AST have been very keen to down play F1 - considering the hpye pre Agnagi and Gazetta, and the subsequent collapse in the sp. SC stated that AST have to be very careful about what they report in RNS' for this, as the well is not an appraisal well - and the authorities (in Italy) look at what will be written.

Slovenia and seismics etc

SC stated that they are concentrating on sorting out the equity interests rather than talking through seismics at present. He gave the impression that they are still sorting out licences, but did not confirm. I told him, I would rather AST maximise their interests in these licences rather than fire out gung ho RNS' alerting the other partners as to potential of the licences. SC agreed that this would be more value accretive for AST.

Slovenia

SC stated that tight gas can be drilled by both vertical and horizontal wells, but well fracced verticals are not that different in price to horizontals, so they will see whats best to drill. I think the cost of a well was around $1 to $1.3 m.

Perrazoli

SC stated that he was surpurised that the P deal was not looked at more favourably by the market. He confirmed that Perrazoli would not buy only the AST 22.5 % , and so they needed the whole 45%. SC said that a director taking shares to that level was a major deal and should have been better rec'd by the market.

Partners

SC said that they will look to bring in partners for the 'big ticket' stuff - didnt ask which projects.

Generally

They have good finance in place, and they are always very frugal with their money. Also, said that 2010 is the company defining year for AST. I said its now or never and it would be good to have a good string of results. All in all - helpful chat, but didnt give away anything to revealing......Good night - enough typing for me.......happy hunting AST'ers!

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its subsidiary PetroHungaria kft, has successfully tested and completed the PEN-101 well, in the Penzlek area of the Nys exploration permits in eastern Hungary. Once the rig has departed the site, the PEN-105 well will commence production to sales.



The completion of the PEN-101 well is, as planned, in a Miocene gas bearing formation within a structure defined on the 3-D seismic acquired in 2008. Initial production rates achieved during preliminary testing exceeded 1.0 MMscfd (28.3x103 Nm3/day), and productivity is expected to be improved in the coming days by the use of small scale acid stimulation, similar to that used with good results on the PEN-105 well.



The PEN-101 well is located at the site of the production facilities that will be used to produce both it and the PEN-105 gas discovery. Production from PEN-105 is expected to commence during the week of 15 March 2010, following the departure of the rig and the granting of operating approval for the facilities from the Mining Authority.



The rig will then move to the PEN-104 location to continue the testing of the PEN-104AA sidetrack and, subsequently will continue drilling the PEN-106 well. The PEN-106 well targets a structure that is similar to that proven by the PEN-105 well.



The Penzlek Project has been a successful investment for Ascent and following Leni Gas & Oil's ('LGO') relinquishment of its interest (announced by LGO on 5 March 2010), it has been distributed among the remaining project partners in proportion to their prior interest in the project, at no additional cost to them.



Ascent's Managing Director Jeremy Eng commented, "The recommencement of production in the coming days and the increased share of revenue that Ascent and its partners now stand to gain following LGO's decision to exit the project is an excellent outcome for Ascent. The Penzlek Project is a good example of the onshore conventional gas production projects targeted by Ascent across Europe. These types of projects benefit from low development and production costs, and with deregulated gas prices, provide a relatively high return on investment. In addition to our successes in Hungary, we will shortly be able to provide an update on the re-drill of the Fontana-1 well in Italy, which is drilling ahead at a depth of over 400m".

cyril



Project

Interest
PEN-101 & PEN-106

Revenue Interest
Cost Share

Ascent Resources plc
48.776%

From todays RNS, we know already the reservoir formation starts at 300m from drill 1, so they are now down to 400m (100m of potential net pay if it contains oil) and still drilling ahead. Sounds exciting potentially :) :

..........In addition to our successes in Hungary, we will shortly be able to provide an update on the re-drill of the Fontana-1 well in Italy, which is drilling ahead at a depth of over 400m".

I reckon that its looking increasingly likely that Fontana is going to be good, and not bad.

All eyes on Italy !! Indeed.


THE TIMES

Tiddler to watch - Ascent Resources

Ascent Resources is looking for oil and gas across Europe. Yesterday, the shares were chased 0.25p higher to 5.375p after the AIM-listed company reported that one of its wells in Hungary had struck gas and another was now ready to start production. All eyes are now on Italy, where results of a further test well are expected within a fortnight.

http://business.timesonline.co.uk/tol/business/markets/article7057457.ece

.

On the front page there is now no more mention of Switzerland (AST Hermrigem) as an Active Project - just been removed :

http://www.envoi.co.uk/actpro.htm


Also, its now classed as "Under Offer" in the summary sheet (page 2) below, which it was not before.

http://www.envoi.co.uk/envoiprojectlocator.pdf



Info document is below, and as you can see from that, the project is a potential 578 Bcf recoverable, which would have quite massive implications for the value of AST should it come off. :

http://www.envoi.co.uk/P154bAscent(Switzerland)EnvoiIntroFlyer.pdf


Not planned in the 2010 drill campaign as it was waiting farm out, but a farm out deal and firm drill date would excite the share price somewhat as its being totally overlooked by the market at the moment.

Jeremy spends 50K pounds on AST shares, and keeps the option for another 450K pounds worth pending until July.

Entering closed period, so major news within a couple of weeks then. Nice to see this buy of shares just after another director took many millions of shares.


http://www.investegate.co.uk/Article.aspx?id=201003180700127535I

Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

18 March 2010

Ascent Resources plc ('Ascent' or 'the Company')

Director's Dealing

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, announces that on 17 March 2010, Jeremy Eng, Managing Director of Ascent, exercised options over 1,000,000 ordinary shares of 0.1p each in the Company at a price of 5.0p per share. Following this purchase, Mr. Eng is interested in 4,808,557 ordinary shares in the Company, representing 0.93 per cent. of the issued share capital of the Company.

The Company is about to enter a closed period, restricting Mr. Eng's ability to exercise his remaining 9,000,000 options before they expire on 10 April 2010 - as a result, the Board of Directors has agreed to extend their exercise period to 10 July 2010.

Application has been made for these shares to be admitted to trading on AIM on 23 March 2010. Following the issue of the new shares, the Company's issued share capital will consist of 516,662,023 Ordinary Shares with voting rights.

* * ENDS * *

The original Anagni-1 was 971m deep and had 140m of reservoir structure before it was deepened. That means it started at 831m.

Therefore, if the structure at Fontana-1 is 300m higher, it means it commences at 531m.

Which means, based on how long it took to get to 400m, now is about the time they will be at 531m and can start drilling/coring the reservoir potential structure.

Which would explain the rush by JE to get 50K sterling of shares in the bank before the coring starts and everyone at AST is classed as insider (closed period).

Sorry, looking back its even deeper than my previous post.

So its from 921m with 50m.

Therefore 300m higher makes that same "fluid loss zone" to be at 621m at Fontana-1 - ASSUMING height above sea level is constant.


To quote the old RNS

28th June 2007

Ascent Resources plc ('Ascent' or 'the Company')

Resumes operations on the Anagni-1 Well

Ascent Resources plc, the AIM-traded oil and gas exploration and production
company, has restarted operations on the Anagni-1 oil discovery well located in
the Frosinone Exploration Permit in the Latina Valley, some 80km east-south-east
of Rome. The well was temporarily completed in January 2007 after log and core
data indicated that the well has drilled into an oil reservoir. Ascent, which
has an agreement with its operating partner Pentex Italia Limited increasing its
share in the project to 80%, is to deepen and test the Anagni-1 well.

The well had been drilled to a depth of 971m and log data indicated the presence
of a limestone (carbonate) reservoir formation over 50m from 921m where total
lost circulation had occurred. Final depth of the well will be determined by
the nature of the formations encountered and also, by the volumes of lost
drilling fluid, the recovery of which may be necessary during the testing phase............

105 on line. 106 about to drill and 101 awaiting some remedial work.

104AA written off, but its the 2nd side track after 104 and then 104A and so they have had a good run out of it already.

Looking forward to Italy and Slovenia says Jeremy, well yes, so am I.


RNS Number : 9877I
Ascent Resources PLC
23 March 2010

Hungarian production and testing update

Ascent Resources plc, the AIM-traded oil and gas exploration and production
company, through its subsidiary PetroHungaria kft, provides an update on
production and testing in the Penzlek area of the Nys permits in Hungary.

Production from the PEN-105 well has commenced and is expected to stabilise at
over 2 MMscfd within a few days. The completion of the PEN-101 well has been
temporarily suspended as the acid stimulation, while clearly demonstrating a
substantial improvement in productivity, caused a suspected failure of the
cement isolation allowing some water production from a deeper zone. A short
sidetrack is being considered and once the drilling of PEN-106 is complete, the
drilling rig will return to the PEN-101 location to conduct the remedial work.
The PEN-104 well is to be abandoned as, following the completion of further
testing operations on the PEN-104AA sidetrack, very low gas productivity and
high watercut make commercial production untenable.

Ascent Resources Managing Director Jeremy Eng said, "The initiation of
production on PEN-105 not only provides cash flow but demonstrates the success
of our strategy of targeting development projects where there is instant demand
for our production. The short term set back of PEN-101 is not expected to cause
significant delay and as soon as the drill rig is available we should be in a
position to ready the well for production. With production online from Hungary,
we now look towards further results from drilling in Italy and the analysis of
3-D seismic in Slovenia."

Update from Fox Davies.


Ascent Resources (AST LN)

BUY

Price: 0.06
Target Price: 0.20

Event

Ascent Resources, through its subsidiary PetroHungaria kft, provided an update on production and testing in the Penzlek area of the Nys permits in Hungary. Production from the PEN-105 well has commenced and is expected to stabilise at over 2 MMscfd within a few days. The completion of the PEN-101 well has been temporarily suspended as the acid stimulation, while clearly demonstrating a substantial improvement in productivity, caused a suspected failure of the cement isolation allowing some water production from a deeper zone. A short sidetrack is being considered and once the drilling of PEN-106 is complete, the drilling rig will return to the PEN-101 location to conduct the remedial work. The PEN-104 well is to be abandoned as, following the completion of further testing operations on the PEN-104AA sidetrack, very low gas productivity and high watercut make commercial production untenable.

Comment

Operational hiccups cannot be fully discounted in oil & gas projects and the situation encountered by Ascent Resources in the PEN-101 well is one of those. The costs overrun is unwelcome but should be limited to below US$0.5m. Overall we believe that it should not materially affect the outcome of the development scheme. On the positive side, production at PEN-105 has been established at expected levels.

Recommendation

We remain buyers with a 20p price target.

http://www.proactiveinvestors.co.uk/companies/news/14774/ascent-resources-starts-production-from-pen-105-14774.html

Tuesday, March 23, 2010

Ascent Resources starts production from PEN-105


Ascent Resources’ (AIM: AST) Hungarian-based subsidiary PetroHungaria kft has begun production from the PEN-105 well in the Penzlek area of the Nys permits. Production from the well is expected to stabilise at over 2mmscfd (million standard cubic feet per day) within a few days. PEN-105 was completed and shut-in in December whilst the company connected it to the main export pipeline and completed drilling of the nearby PEN-101 well.

"The initiation of production on PEN-105 not only provides cash flow but demonstrates the success of our strategy of targeting development projects where there is instant demand for our production”, Ascent Resources MD Jeremy Eng commented.

Ascent also noted that the short-term set-back of PEN-101 is not expected to cause a significant delay. The neighbouring PEN-101 well was successfully completed and tested earlier this month. The company subsequently undertook acid stimulation on the well. Ascent said that whilst the procedure clearly demonstrating a substantial improvement in productivity, it also caused a suspected failure of the cement isolation, allowing some water production from a deeper zone.

“The short term set back of PEN-101 is not expected to cause significant delay and as soon as the drill rig is available we should be in a position to ready the well for production”, Eng added. The company is considering a short sidetrack and the drilling rig will return to the PEN-101 location to conduct the remedial work, once PEN-106 drilling is complete.

Additionally, the company stated that, following the completion of further testing on the PEN-104AA sidetrack, the PEN-104 well will be abandoned. According to Ascent the well has a very low gas productivity and high watercut, which makes commercial production untenable.

London-based Stockbroker, Astaire Securities said that PEN-105 represents an important milestone at Peneszlek, and whilst the news from two other wells is less encouraging Ascent seems confident that it can get PEN-101 on stream in a matter of weeks. The stockbroker said it had not assumed any contribution from PEN-104.

The Penzlek area is being developed through a partnership between four companies, of which Ascent is the largest stakeholder with 48.776%, DuelEx is the second largest with 40.44%, Geomega kft owns 8.627% and Swede Resources has 2.157%.

“With production on-line from Hungary, we now look towards further results from drilling in Italy and the analysis of 3-D seismic in Slovenia".

In Italy Ascent has a number of operations. Most recently the company began re-drilling of the Fontana-1 well in February, to appraise the shallow part of the Anagni structure in the Frosinone exploration permit in the Latina Valley. Meanwhile, in Slovenia the company is continuing to evaluate 3D seismic, acquired in 2009, covering the Petisovci and Lovaszi oil and gas fields, at the Filovci project. In December Ascent reported that the preliminary results were very encouraging. The company intends to drill two wells in Slovenia during 2010.

Excellent news :

http://www.investegate.co.uk/Article.aspx?id=201003250700281536J

Ascent Resources PLC

25 March 2010

Results of 3-D Seismic for the Petišovci Project in Slovenia


Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its wholly owned subsidiary Nemmoco Slovenia Corporation ('NSC'), has completed the 3-D seismic processing and the preliminary interpretation for the Petišovci project in Slovenia with positive results.


Completion of 3-D seismic processing and interpretation in Slovenia

Management estimates additional potential of 75 Bcf of recoverable gas

Mapped over 12 new drilling targets and plan to drill a number of wells in 2010 and in 2011

Extended project area where majority of new prospects identified

NSC holds a 75% interest in both the shallow and the deep reservoirs in the 61.5 km2 extended Slovenian area

New 65 km2 of 3-D seismic acquisition in the Hungarian area to commence shortly

Planning is now proceeding for a number of wells to be drilled both in 2010 and in 2011 and discussions are on-going with project partners to prioritise the drilling of the prospects that have been identified.

3-D seismic was acquired over some 120 km2 primarily in the territory of Slovenia, but also circa 25 km2 across the border in Hungary. More than a dozen new drilling targets have been mapped from the 3-D data. These new prospects are in addition to the reserves identified in the independent persons report on the deep prospects completed in 2004. Management estimates these new prospects have a combined potential of over 75 Bcf of recoverable gas and it can also be expected that successful drilling of some of these prospects will lead to further follow-on targets as they investigate trap types that have not been previously drilled in this area.

The original Petišovci project area covers an area of 35.5 km2 and NSC is partnered in the joint venture by Geoenergo, Stratic Energy and Kulczyk Oil Ventures Inc. NSC has a 45% interest in the shallow oil and gas reservoirs and a 15.75% interest in the deeper tight gas reservoirs. The project area in Slovenia has been increased by 61.5 km2. Here, Ascent through NSC, has a 75% interest in both the shallow and the deep reservoirs and is in partnership only with Geoenergo. It is in this extended area that the majority of the new prospects have been identified.

In the adjacent Hungarian part of the project, Ascent, through its wholly owned subsidiary Ascent Hungary Limited ('AHL'), has a 50% interest in an area of 90 km2 in partnership with MOL Oil and Gas plc. The contract for a further 65 km2 of 3-D seismic has been executed between GES, the Hungarian contractor and AHL and preliminary survey work will commence immediately. After the further 3-D seismic acquisition, an initial two exploration wells in this area are planned and possible locations have already been identified on the 25 km2 of 3-D seismic that has been acquired and processed in Hungary.

Jeremy Eng Ascent's Managing Director commented, "The preliminary results from the seismic acquisition have exceeded our expectations. We now have a much better understanding of the configuration of the reservoirs within the project and have identified additional prospects outside the previously reported area of the original Petišovci field."

* * ENDS * *

Good news for local producers as they take the gain with the rise being said to be "due to dollar strength and import prices".

http://www.foxbusiness.com/story/markets/hungary-average-natural-gas-prices-rise-april-/


Thursday, March 25, 2010

Hungary Average Natural Gas Prices To Rise April 1 By 10.1%

By Veronika Gulyas
Dow Jones Newswires

BUDAPEST -(Dow Jones)- Natural gas prices in Hungary are to rise April 1 by an average of 10.1%, the Hungarian Energy Office, known as MEH, said Thursday.

Of the increase, 8.4 percentage points will be from a rise in the price of imported natural gas with the remainder due to the firming of the dollar against the forint and to gas price compensations expiring, the MEH said in a statement.

Gas prices for residential consumers that use less than 20 cubic meters of gas an hour will increase by 10%.

Gas prices will rise 9.5% for public institutions and by 10.2%-12% for regulated gas consumers using more than 100 cubic meters of gas an hour, MEH said.

Company Web site: www.meh.hu

To be sure to be sure so everyone understands, the Fontana drill is purely to collect cores, the cores will then checked for oil and porisity/permeability and they can know whether a drill into the formation will lead to a commercial well being possible.

Coring is all about using a special drill bit, not surprisingly called a Core Bit and Barrel.




Whilst the bit drills away the centre portion is undrilled and go goes "up the barrel" for collection as a core sample.





What is left in the barrel is the "core sample" which will be collected and sent for testing.





So the result will be cores contain oil or not, permeability/porosity is ok or not, and if they have oil and it should flow according to tests on perm/porous, there will be a decision to either convert this Fontana well from a geologic permit to a testing permit (as happened at Anagni) or a decision to drill a new well, with a proper rig and it being an appraisal well designed for testing and production.


.

L2 is 5 v 1 @ 5.0p / 5.5p with just CANA on the offer at 5.5p (all the rest at 6.25p/6.5p


On Line Limits quite liquid :

Max Buy 250K @ 5.4p

Max Sell 250K @ 5.28p

http://www.oilbarrel.com/nc/news/display_news/article/ascent-resources-identifies-additional-upside-in-slovenia/860.html

March 31, 2010

Ascent Resources Identifies Additional Upside In Slovenia


Investors awaiting news from Ascent Resources Fontana-1 re-drill in Italy are being happily diverted by news from some of the AIM companys other projects in mainland Europe. This includes good news from its Petiovci project in Slovenia, where positive seismic results are reported to have exceeded expectations, and the welcome start of production from the PEN-105 well in eastern Hungary.

First to Slovenia, where a 120 sq km 3D seismic shoot over Hungarian/Slovenian border area has yielded better-than-expected results. The bulk of the seismic targeted the Slovenian lands (just 25 sq km was shot in Hungary), where Ascent recently beefed up its acreage position. The AIM company now has a 45 per cent interest in the shallow reservoirs of the original Petiovci project area (some 35.5 sq km) and a 15.75 per cent interest in the deeper tight gas reservoirs, as well as a 75 per cent interest in the both the shallow and deep reservoirs of an additional 61.5 sq km project area.

It is this extension area that has yielded such positive results from the new seismic, with the 3D data identifying some 75 billion cubic feet of recoverable gas, with 12 new drilling targets mapped and ready to drill in 2010 and 2011. We now have a much better understanding of the configuration of the reservoirs within the project and have identified additional prospects outside the previously reported area of the original Petiovci field, said MD Jeremy Eng.

Analysts at Fox Davies Capital said this was a very encouraging result after a number of small setbacks for the company in recent months. The broker estimates the risked value of these newly identified prospects to be about four pence per share (12 pence unrisked). This represents substantial upside for a company currently trading at just over five pence a share, although, as the broker noted, the company needs to signpost how it would fund these additional wells in order to unlock that potential value.

Over the border in Hungary, Ascent has a 50 per cent interest in a 90 sq km area that adjoins its Slovenian lands. There are plans for a further 65 sq km seismic shoot here to identify further drilling targets. The recently acquired 25 sq km of 3D data has already yielded two possible well locations for two planned exploration wells here.

The AIM company is, of course, already a producer in Hungary, where it has enjoyed some success in the Penzlek area of the Nys permits in the east of the country, in which Ascent has a 48.776 per cent share. Last week, Ascent announced first production from last years PEN-105 well of 2 million cubic feet per day. This robust production stream will provide welcome cash flows for the company and demonstrates to the market how these low cost wells can be quickly tied into existing infrastructure to feed local gas-hungry markets.

Not that these tight gas reservoirs are simple to bring on stream, as the experience with the PEN-104 well and its sidetracks has demonstrated. The original PEN-104 well is now to be abandoned following the completion of testing operations on the PEN-104AA sidetrack, due to low gas productivity and high watercut while the sidetrack has proved a complicated drill, requiring ongoing testing to understand its potential. The recently drilled PEN-101 well has also been temporarily suspended pending remedial work to correct a cementing fault. The remedial work will get underway following the drilling of PEN-106.

This is more a hiccup than a headache, however. Eng described the PEN-101 well as a short term set back [which] is not expected to cause significant delay. As soon as the drill rig is available, we should be in a position to ready the well for production, he said. This was echoed by analysts at Fox Davies Capital. An operational delay in PEN-101 that will unlikely cause material costs overrun on initial budget and should not materially affect the outcome of the development scheme, they said.

Meanwhile, at the time of writing, investors were still awaiting news from Italy, where the company is revisiting the Anagni structure in the Latina Valley. The Fontana-1 well is a re-drill of an earlier appraisal well that suffered loss of circulation of the drilling mud in the target formation, destabilizing the well and preventing the collection of core samples. The losses occurred 300 metres shallower than in the Anagni -1 well of 2008, which also suffered large losses but did confirm the presence of live oil. The re-drill will only add about 20 per cent to the original drilling budget yet could deliver significant upside if it confirms the potential Ascent has longed believed to be resident in this complex structure.

For those that missed it, an update today. PEN-106 being drilled. Once the 106 well is complete the rig will go back to 101 and perform a quick sidetrack to get that one into production. So before too long we will have 105 and 101 in production, hopefully soon the GH-1 well as well, and then drilling being good also the 106 well.

Circa 8 weeks should be 4 producing wells on line. So.... next question, why did MG buy so many AST shares recently and when is the Fontana coring results news ?


RNS Number : 5879J
Ascent Resources PLC
01 April 2010

PEN-106 Drilling Update

Ascent Resources plc, the AIM-traded oil and gas exploration and production
company, through its subsidiary PetroHungaria kft, announces that it is
currently drilling the PEN-106 well, part of the Penzlek Project in the
Penzlek area of the Nys exploration permits in eastern Hungary.

The target of the well is the Miocene tuffaceous formation within a structure
defined on 3-D seismic of the area acquired in 2008 and similar to that proven
by the PEN-105 well. The well is planned for a total depth of approximately
1,500m and, if productive, will be connected to the existing Penzlek
facilities by a 2 km pipeline, for which the permit has already been obtained.

Once the rig has finished the PEN-106 well, it will return to PEN-101 to
complete the remedial work required to ready the well for production.

Swiss Project just updated from "Under Offer" to "Under Exclusive Offer" on the Envoi site.

So news there could be a short time away, few weeks perhaps.

http://www.envoi.co.uk/envoiprojectlocator.pdf

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