.

I have been tucking a few more away on weakness, anthing below 8.15p and I am adding today:)

Gazzatta-1 should be spudding next week, then only 4 weeks of drilling before we know about the prospects there, anything commercial, if it is, could add value to AST of between 1p to 100p, just depending on the final size of any such find.

Quite exciting really.


And back in Hungary, here is some information thanks to "oiljack" :

More Hungary information, including price of gas as of May 2009, and more Tunisia information....

It is funny how much WIX, or Winstar, and DXE have in common. They have properties in Hungary and Tunisia like us. We have production in Hungary and are hoping to get production in Tunisia and they have production in Tunisia and are hoping to get production in Hungary. I find their investor information packages to be quite useful, amazing really, from an information point of view.

The May 2009 stated price of gas in Hungary is $10.50 mcfe/Ca. or $8.50 mcfe/US. The spring-summer price is always lower than the fall-winter price even though it is mainly based on a weighted 9 month average of the price of Brent etc.


Fiscal and Economic Regime

Royalty: 13%

Income Tax when applicable 16%

Current Gas Price: ~$10.50 CAD/mcf ($8.50 US/mcf)



The price of drilling has also come down quite far. A 1500 metre Pannonian well now costs $2 mm to drill and test and complete according to their numbers. Drill, complete and test, and tie in costs are 2 mm.

Drilling Option - Q1 2010

Drill 2 wells (1500m) per block

Cost: $2 Million per well (d, c & c)


WIX is investigating the Zala Basin where AST has their Bajcsa Gas Field to redevelop (60 bcf) and there are many 100 bcf (8+) gas fields already discovered there. This area has been extensively drilled up by MOL and yet it remains an area of keen interest to the like of MOL-INA (Croatian national oil co now controlled by MOL), AST, HHE and WIX. This is the western Pannonian fairway and the eastern Pannonian fairway where we now operate is only getting extensive drilling operations in the past 2 years. The same players are now very active there and are drilling more on a proportional basis (number of wells) than in the western portion of the country.

Here is WIX's farm in contract - won't be there long - so if you get a chance give it a read.

http://www.winstar.ca/documents/2009/Miscellaneous/Igal Farmout Ad - May 6 2009.pdf


.

Given that the spud date should be around this weekend, and hoping its going to be on time, we should be looking for an RNS late next week to tell the markets that the well has spudded.

Should drive some excitement given the potential upside from this well. We will surely attract all the hot money and rampers again once they realise that this stock has upside on this well that no other stocks can compare too.

The real beauty of the Po Valley is that the drill is in a gas producing area, the biggest one in Italy, and with all the necessary infrastructure in place. Find gas and it can be put on line simply BUT also there is the option to sell, as its located in a gas producing basin the money paid for "in the ground" proven gas is very high, and so it is an option.

However, with the Anagni-2 well due to come soon too, and a very good chance that will find commercial oil, its going to be far better for AST to, if they can of course, find gas at Gazatta and then oil at Anagni and then with an SP way way higher than today raise some money to put them both into production.

Either being a success will be good, if they both are a success you can kiss goodbye to sub 50p Ascent share price for ever.

You really should be a pollition speech writer, you sold it to me ...

It speaks for itself really, just a little research into the potential.

However, nothing wrong with helping it speak up a bit :)

Few bits of Otto news around. Its relevent to AST as Otto is paying for 100% of the upcoming (spud this weekend?) Gazatta-1 drill in the Po Valley in Italy, through to completion of testing.



First up.

Otto Energy has raised all their cash they wanted, this removes any issues over their funding of the Gazatta-1 drill that some may have tried to imply. All taken up and the shortfall has been placed.

ASX ANNOUNCEMENT 12 May 2009

ENTITLEMENT ISSUE

‐ NOTIFICATION OF SHORTFALL AND ALLOCATION OF SHORTFALL

Otto Energy Limited (ASX: OEL) (Company or Otto) advises that acceptances
under the Company’s non‐renounceable 3 for 4 entitlement offer announced on 3 April 2009 (Entitlement Issue) closed on 7 May 2009.

The Entitlement Issue raised approximately $16.2 million before issue costs.
Acceptances for 324,960,220 shares were received, representing a take‐up of
approximately 76.5% of the total entitlements available under the Entitlement
Issue.

The Company is also pleased to announce that it has placed the entire shortfall
under the Entitlement Issue to raise a total of approximately $21.2 million
(before issue costs). Placement shares will be allotted on or about 18 May
2009.

All shareholders who applied for entitlement shares under the Entitlement
Issue will receive their entitlement and application monies for additional new
shares will be refunded. Otto expects that, following allotment of the Entitlement Issue shares, holding statements and refund cheques will be dispatched on 14 May 2009. Yours faithfully,


---------------

Secondly, Production for Otto at Galoc is on now. Again meaning they are cashed up.

http://au.biz.yahoo.com/090513/42/26b1t.html

Otto Energy Limited (ASX:OEL) Announce Production At The Galoc Oil Field Has Recommenced
Wednesday May 13 4:34 PM

Perth, Australia, May 13, 2009 - (ABN Newswire) - Otto Energy Limited (ASX: OEL.AX)(PINK:OTTEF) has been advised by the field operator, Galoc Production Company WLL (GPC), that production from the Galoc oil field recommenced as of 1030hrs local time.

Both Galoc 3 and Galoc 4 wells are on line and flowing with .............

-----------------

Thirdly, a new broker report on Otto confirms the potential value to Otto for a "medium size" commercial find at Gazatta is 20 Oz cents per share. This equals 35p a share to Ascent. And of course, if the find should be top size the potential value to Otto is 60 Oz cents, and to Ascent 99p a share.

Upside.......love it. And this excludes of course any potential find at G-1 will make the next drill (Rubiera) a whole lot derisked and worth potentially quite a bit more to AST.

Here is the link to the Otto report.

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

Reading the bit from the Otto report link in the earlier post :

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.


In case anyone is wondering about the secondary target, well this is where the potential upside comes from. The primary target is where the potential 35p a share to AST comes from, the upside to 99p a share potential comes from the secondary target.

In detail here from the farm out document :

The Gazzata Prospect: This is the primary stratigraphic trap identified in Ascent’s acreage associated with a clear AVO anomaly in the Porto Garibaldi sand. All the seismic lines across the prospect show a consistent dim out of the amplitude anomaly at a common depth. Crestal depth for the primary target is estimated to be 1,750 metres subsea.

Other sands within the Porto Garibali Formation show weaker AVO anomalies and form secondary targets within the prospect. All reservoirs are sealed by shales within the Porto Garibaldi formation. Using parameters from the Coreggio field, the Gazzata structure has estimated ‘most likely’ reserves of 130 Bcf recoverable
within the primary target and an upside in excess of 386 Bcf recoverable.


As ever this could be a dry well and worth nothing, but thats the risk on every drill.

MM's treeshaking stocks today looking for stop losses. AST swung done so I tried to buy, could not get any. Managed finally to get just over 30K at 7.25 and then and now cannot buy anymore on line.

Cannot blame them though, thats their job, make a market.

Financing now complete.....and ready to roll with the news in the months ahead.

:)


RNS Number : 2629S
Ascent Resources PLC
14 May 2009




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

14th May 2009

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

5m Equity Line of Credit Secured with GEM Global Yield Fund


Ascent Resources plc, the AIM-traded oil and gas exploration and production company, has entered into an agreement with GEM Global Yield Fund Limited ('GEM') whereby GEM has made available to the Company an equity line of credit of up to 5 million ('the Facility'). The Facility will be used to assist in funding the Company's exploration projects not covered by production revenue, and if appropriate, to finance investments in additional exploration projects that are outside the investment profile of the Ascent/San Severina asset management joint venture ('the JV') announced in October 2008.


Ascent Managing Director Jeremy Eng said, 'This arrangement fits well into our overall financing strategy and provides us with funding certainty and flexibility. We have an extensive portfolio of production and prospective exploration assets across Europe and this facility will assist in developing these assets. Additionally, the facility will also enable us to pursue further exploration projects not considered under our agreement with San Severina, at a time where there are distinct opportunities of acquiring distressed assets.


'The JV is progressing well and we look forward to announcing significant transactions which will provide both Ascent and San Severina with equity interests in oil and gas projects primarily outside of Ascent's European focus area in the near future. These projects will underpin our partnership, in which San Severina aims to invest an initial €100 million in oil and gas producing, appraisal or development projects.'


Under the terms of the Facility, the Company is able to make draw downs of cash, at times of its choosing, by issuing new ordinary shares to GEM. The equity line is available for three years from 13 May 2009 and draw downs cannot be called by GEM. The Company may issue a subscription notice requesting GEM to subscribe for a number of shares up to a maximum of 5 times the average daily trading volume in the 15 trading days immediately preceding the date of the subscription notice. GEM has the right to buy between 50% and 130% of the subscribed shares and can buy up to 200% with Company consent. The shares will be priced at a 9% discount to the average closing mid price of the shares over the 15 trading days immediately following the issue of the subscription notice. Furthermore, the Company has issued warrants to GEM over 15,000,000 shares which are exercisable at 10.16p for a period of five years from the date of issue.

Looks quite decent to me.

15m warrants at 10.16p, fine thats the sweetener and worth 1.5m cash to Ascent if utilised.

But the drawdown is along with a floating price mechanism, so if they are successful at Gazatta or Anagni (or indeed at both), the money gets much cheaper, and its called by AST and not GEM.

The amount of any dilution is subject to success with the drill bit.


Wonder what "distressed assets" Jeremy is planning on buying ?



Also nice little update on the SS deal, seems to be going well then.

Todays write up and opinion from OB of yesterdays news.

http://www.oilbarrel.com/news/display_news/article/ascent-resources-extends-credit-line-as-investors-await-news-of-first-san-severina-transaction/771.html

Ascent Resources Extends Credit Line As Investors Await News Of First San Severina Transaction

Ascent Resources has extended its credit facilities through a 5 million arrangement with GEM Global Yield Fund Limited, US$2.7 billion investment group. This move equips Ascent with the financial headroom to explore its existing assets or acquire distressed assets. Managing director Jeremy Eng said the arrangement provided funding “certainty and flexibility”. This is important because Ascent is at a very interesting point in its history, with a number of key developments promising much for the future.

The first such development is the alliance with San Severina Holdings, a Swiss based investment company, which was signed in October 2008 and has been described by analysts at Fox Davies Capital as “a game changing agreement”. The two companies agreed to form a joint venture that will acquire minority interests in upstream projects. Ascent will supply management services for these oil and gas properties in return for a carried equity stake in the projects while San Severina, an investment fund that has been active since 1972, will put up the cash as part of a wider plan to commit an initial €100 million to a new oil and gas investment division. As Jeremy Eng told oilbarrel.com at the time, “This is something very different for the industry. We think it’s got fantastic potential.”

But since then, this “fantastic potential” has been slow to materialise. Shareholders, frustrated by the lack of news since October, will have been gladdened by Thursday’s announcement, which saw Eng report that the joint venture was “progressing well” with the pair working on “significant transactions” that might be announced in the near future. In an announcement that will do little to quash rumours that Ascent is eying producing and development assets in the US, Eng confirmed that the transactions in question will lie “primarily outside of Ascent’s European focus area”.

The second key development is the imminent spudding of the Gazzata-1 well in Italy. Gazzata-1 will target an 8 sq km gas prospect, as defined on the seismic, with a possible 100 bcf-plus gas resource. This could be a company-maker and investors have been keen for the company to drill up this promising structure in Italy’s prolific Po Valley for some time. But Ascent was stymied here by its farm-in partner Otto Energy, which in December asked Ascent to hold off drilling the well until after mid-March. This was the second such request from ASX-listed Otto, which had been grappling with production problems on its Galoc field in the Philippines that weakened its financial position.

With Otto now back on track, Gazzata is, at the time of writing, due to spud any moment. Otto’s farm-in terms will see the Australian firm earn a 50 per cent interest in the Po Valley well in return for carrying Ascent’s costs, making this high impact well all the more appetising for investors. They now won’t have long to wait for news on the project: the Gazzata prospect lies at a depth of 2,100 metres and should take about a month to complete so investors should anticipate some news flow before the end of June.

Investors are also keen to hear more about the company’s ventures in Hungary, where Ascent is now producing gas from the PEN-104A well in eastern Hungary at a rate of 2.5 million cubic feet of gas per day (Ascent has a 45.23 per cent interest). This production income will help to underpin the company’s other exploration, appraisal and development projects in Hungary, where there is plenty of potential to add to the production tally in fairly short order.

According to analyst Stephane Foucaud of Fox Davies Capital, further development of the PEN-104 assets plus the redevelopment of the Bajcsa field in the southwest of Hungary (Ascent holds a 38.73 per cent interest) could see the company generate US$12 million in cash flows in 2010 and US$22 million a year from 2011. These are healthy numbers and will separate Ascent from many of its cash-strapped AIM peers.

The latest credit arrangement with GEM adds additional flexibility to the funding mix (Ascent doesn’t yet have enough producing wells to provide redundancy should one go offline as happened earlier this year when the PEN-104 well was shut-in for maintenance on some third-party equipment). Under the terms of the 5 million facility, Ascent can draw down cash by issuing new ordinary shares to GEM. The AIM company can issue a subscription notice requesting GEM to subscribe for a number of shares up to a maximum of five times the average daily trading volume in the 15 trading days immediately preceding the subscription notice. GEM has the right to buy between 50 and 130 per cent of the subscribed shares and can buy up to 200 per cent with Company consent. The shares will be priced at a nine per cent discount to the average closing mid price over the 15 trading days following the issue of the subscription notice.

The Gazatta-1 well should spud (start to drill) before the 28th of May, normal rig up problems going to delay it a few days.

And nows its underway...............


Otto Operations Update


http://www.ottoenergy.com/irm/Company/ShowPage.aspx?CPID=1332&EID=10000000



......................Italy – Cento‐Bastiglia Permits

Drilling commenced on 19 May 2009 in the Cento‐Bastiglia Exploration Permits
located in the Po Valley, onshore Italy.

The operator, AIM‐listed Ascent Resources Plc (Ascent) advises that the primary
target lies at approximately 2,100 metres in Pliocene sandstones. The well will take approximately 3‐4 weeks to reach target depth assuming trouble free drilling.

Gazzata‐1 is being drilled with the new Perazzoli HH‐200 drilling rig.
Otto is earning a 50% working interest via the funding of the Gazzata‐1 well and a second well if Gazzata‐1 is a significant discovery (over 10 bcf of gas). There is a cap on the expenditure for both the Gazzata‐1 and the second well, above which the contribution is 50/50 between Otto and Ascent.

The Gazzata Prospect

The Gazzata‐1 exploration well targets P50 prospective gas resources of over 100 Bcf in a seismically defined amplitude anomaly of over eight square kilometres in area.

The minimum economic threshold for a commercial gas discovery in the Po valley with its excellent pipeline infrastructure and high European gas pricing is calculated by Otto to be less than 10Bcf of recoverable gas.......................

http://www.investegate.co.uk/Article.aspx?id=200905210700146151S


RNS Number : 6151S
Ascent Resources PLC
21 May 2009

Slovenian Exploration Project Farmout

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, through its wholly owned subsidiary Nemmoco Slovenia Corporation ('NSC'), has farmed out one half of its 80% participation in the Eastern Slovenian Exploration Project to Aspect Energy International ('AEI'), a subsidiary of Denver based Aspect Holdings LLC ('Aspect'). The Eastern Slovenian Exploration Project is situated on the eastern edge of the Pannonian Basin, covering 864 square kilometres of the 2,473 square kilometre Pomurje Regional Exploration Area, adjacent to the Hungarian and Croatian borders. The exploration licence is held by Nafta Geoterm d.o.o., a subsidiary of state-owned energy and petrochemicals conglomerate Nafta Lendava d.o.o., which retains a 20% carried interest.

Work on the exploration project has already commenced with a comprehensive geological and geophysical study in its final stages. A 3-D seismic acquisition, as well as appraisal and exploration drilling is planned during the coming year. Of a total of 65 exploration wells in the region, nearly half (27 of 65) reported hydrocarbon shows or produced oil or gas. Both AEI's sister company, Hungarian Horizon Energy ('HHE') and Ascent's 45.23% owned PetroHungaria Kft, have experienced some success in the exploration and production of gas in the Hungarian part of the Pannonian Basin, with HHE currently being the second largest gas producer in Hungary.

Expenditure on the exploration project will be equally shared between NSC and AEI; however, AEI will pay the first €1 million and a disproportional payment mechanism will apply until a cumulative €3 million has been spent.

Ascent's Managing Director Jeremy Eng said, 'This is the second exploration partnership that Ascent has undertaken with Aspect, which over the past five years has successfully explored and exploited hydrocarbon reserves in neighbouring Hungary. We look forward to continuing their success in Slovenia. Previous exploration work in the area has provided encouraging results and we look forward to the completion and interpretation of the geoscience studies and commencement of further appraisal and exploration drilling.'

* * ENDS * *

Well i decided to rejoin the party this am,hugh potential in this company imv?
Just noticed my trade down as a sell?
cyril

cyril, yes there is a seller (RAB still offloading) at around 8.5p, so most of the time ignore the advertised prices you can buy between 8.5p to 8.6p.

The advertised prices are higher simply to make margin traders pay more, what AST needs are buyers of real stock to clear out RAB, not margin money in for a few days or weeks.

The irony is that should Ascent strike commercial gas at Gazatta, then its likely it would then change from being "outside of RAB's interest" and so a sell by them, to being "off interest with a major project" and so they would change from seller to buyer.

Such are the ways of the fund manager and the rules of the fund................

In case anyone is wondering, this farm out is only relative to the Eastern Exploration assets, which they had an 80% stake in, now reduced to 40% but with free carry.

They are also due to farm out other Slovenian assets, for info here is a snippet from the previous Fox-Davies write up on Slovenia.

http://www.fox-davies.com/media/40194/ic_ascent_01.03.09.pdf


Petisovsci Dolina Re-Development Project (Shallow) - 45% interest

This is an oil play. The work being carried out by Ascent in 2008 involves a complete re-assessment of the geological, geophysical and engineering information from the fields. This work is resulting in development of a new field reservoir model and the Joint Venture now plans to acquire 3D seismic over the field area as well as considering proposals for reentering a number of existing wells. There is a potential to book 10.7 mmbbl oil 2P reserves. We have assumed half that number as contingent resources (rather than 2P reserves). A CPR is due in 2009 following 3D seismic. Depth is about 1,500m.


Petisovsci Dolina Re-Development Project (Deep) - 15.75% interest

This is a deep tight gas play. The partnership has been evaluating the deep E1 sands which were tested and flowed gas in the D-14 well in the fourth quarter 2007. Further well intervention work is planned for the D-14 well and the results of the 3-D seismic will assist in planned future operations. The company estimates that the field could hold 579 bcf gross prospective resources (50% chance of success). We have assumed half that figure. Obligations on the licences are limited to seismic activities before end 2010. Depth is about 2,200m. Ascent is considering farming down to San Severina. The development plan includes 3 deep gas wells and 5 oil wells with an initial plateau gross production of 1.5 kboe/d by 2011 (2010 according to Ascent). Gross capex is estimated at $13m.


East Slovenia Exploration Permit - 80% interest

In July 2008, the company signed a Preliminary Agreement for an 80% participation in the exploration of the East Slovenia Exploration Permit to the north of the Petisovsci oil and gas field redevelopment project. The East Slovenian Project covers an area of 864 sq. km over three separate blocks within the Pomurje Regional Exploration Area. The current work programme envisages a regional exploration study followed by seismic activities in 2009.

Looks like RAB have finally stopped selling now then.

http://www.investegate.co.uk/article.aspx?id=200905211711176831S

RNS Number : 6831S
Ascent Resources PLC
21 May 2009

Holdings in Company

Ascent was informed on 21 May 2009 by Credit Suisse Client Nominees (UK) Limited ('Credit Suisse'), that as at 20 May 2009, Credit Suisse was interested in 17,208,439 ordinary shares of 0.1 pence each in the Company, representing approximately 5.65% of the issued share capital of the Company.


This information is provided by RNS
The company news service from the London Stock Exchange

RNS Number : 7542S
Ascent Resources PLC
22 May 2009

The following replaces the announcement made on the 21 May 2009 at 17:11 under RNS Number: 6831S.

The full amended release appears below:

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

Ascent was informed on 21 May 2009 by RAB Energy Fund Limited ('RAB Energy'), that on 20 May 2009 RAB Energy held a total of 17,208,439 ordinary shares of 0.1p each in the Company registered in the name of Credit Suisse Client Nominees (UK) Limited, which represents 5.65% of the Company's issued ordinary share capital.

From t1ps.com (EK)
"My informant has this morning updated me on Ascent (AST) which is coming to the boil. I bought another 500,000 at 8.1p yesterday. RAB have stopped selling. And, more importantly, the Gazzata-1 gas exploration well in Italy is currently being drilled, using a new 200 ton drilling rig which is part-owned by Ascent. That will bite its way down to the primary target pretty swiftly. The chance of success is high - but of course it's not a certainty. And the PEN gas well in Hungary is now back in production after the successful work-over. So a decent income stream to Ascent is restored. It looks to my informant as if exciting times may be on the horizon for AST and its shareholders.

Ascent is also readying itself to drill Agnani-2, an oil exploration well in Italy, in the near future. This well is targeting a reservoir believed to contain a potential 30 million barrels of oil. This reservoir was drilled two years ago with the Agnani-1 well, which did find some oil. However, it encountered various difficulties and the testing could not be successfully completed. This target is like Gazzata-1, another potential company-maker.

Further, Ascent's joint venture with the investment fund San Severina Holding of Switzerland is progressing well, and news on the first investment is expected soon. The agreement provides Ascent and San Severina with equity interests in oil and gas projects primarily outside Ascent's current European focus. San Severina is aiming to invest an initial 100 million euros in production, appraisal and development projects; Ascent provides various know-how and management services, and in return receives a free 20% carry on the upside. With such funds available, Ascent is surely motoring."

As expected the sale of part of the Jolly Ranch Project (HAWK and RF) is to San Severina, and Ascent Resources will get 4% of the project.

HAWK RNS :

http://www.investegate.co.uk/Article.aspx?id=200906010700120888T


AST RNS :

http://www.investegate.co.uk/Article.aspx?id=200906010700120988T



The main thing for me is this now puts an end to the nonsense spouted by a few that San Severina had no money, its all a fake or fraud :) LOL

Looking forward to more deals in which AST gets 20% free of the total purchased by San Severina as payment for their efforts.