.

GB, I think its Mark Slater.

Tiger have stopped selling now, but Mark Slater started so more likely Slater.

http://www.oilbarrel.com/nc/news/display_news/article/ascent-resources-secures-the-funding-for-key-well-in-slovenia.html

November 25, 2010

Ascent Resources Secures The Funding For Key Well In Slovenia

It may seem counter-intuitive but as Ascent Resources has trimmed its portfolio in recent months, so its market appeal has increased. Gone are the Swiss assets (although with back-in rights), the Bajcsa tight gas venture in western Hungary, the Gbeha-1 discovery in Hungary, the concessions in northern Spain and a shareholding in an Italian rig company. The proceeds from these disposals have strengthened the balance sheet and clarified the Ascent story: quite simply, the streamlined Ascent is increasingly a tight gas play in Eastern Europe.
The prospect with the largest potential is Petişovci/Lovaszi, which spans 200 sq km of the Hungarian-Slovenian border. A recent technical audit by RPS Energy put the P50 gas-in-place number at more than 400 bcf. This was an area that was extensively drilled for shallow oil and gas production but has languished, unloved, since the 1980s. Until now.

Ascent last week announced it now has the funding in place to drill the first well in thirty years on the Slovenian side of the project. The AIM E&P has secured a one year loan facility of 2.1 million, with an interest rate of six per cent a year that will be covered by cash flow from existing production in Hungary, and has entered into a 7 million Standby Equity Distribution Agreement with investment company Yorkville Advisors LLC.

This means Ascent now has the financial headroom to proceed with the Pg-11 well in Slovenia, a key test of the commercial viability of the tight Miocene gas sands at Petişovci/Lovaszi. Despite some site preparation delays due to the extremely wet weather in Slovenia, the Crosco rig will be mobilised this week with drilling expected to get underway in the first week of December.

This is a vertical well, which will be drilled to 3,000 metres, and its been designed to gather as much data as possible using state-of-the-art wireline logging and core sampling. Well use the well data to recalibrate the 3D seismic and were also targeting the well into a seismic bright spot, which we hope will turn out to be a region with better reservoir characteristics, a sweet spot, MD Jeremy Eng told oilbarrel.com. We see these patches around the field, at all different levels, and now well get to see what they are.

This is the first well to be drilled into the Petişovci field in Slovenia since 1980 and the 11th to be drilled into the Miocene reservoirs (next year Ascent plans to drill further wells and two exploration wells on the Hungarian side of the project area). The field, and its Hungarian continuation, have been extensively drilled at shallower levels since 1940s, with some 125 wells on the Slovenian side and 400 on the Hungarian side. These wells targeted shallow oil and gas reservoirs, which have been largely depleted, so Ascent is targeting the deeper, gas rich Miocence reservoirs, where a cumulative total of just 9 bcf of gas has been produced from the more than 400 bcf gas-in-place estimate.

As Ascent points out, if only half of that P50 estimate is recoverable, then the AIM company is still looking at a significant share of the 200 bcf redevelopment project, making it comparable to many North Sea developments. Yet this is an onshore project in a country where drilling is relatively cheap, gas prices are high and theres plentiful nearby infrastructure to bring production quickly onstream. Thats one of the delights of this project, said Eng.

First, however, Ascent needs to prove these tight rocks can flow gas at commercial rates. The company is doing everything it can to maximise that chance, drilling into a potential sweet spot, planning acidisation, a stimulation technique it has used successfully elsewhere in Hungary, and using ground limestone rather than barite as a weighting agent in its drilling muds. In the history of the field, only one well has ever sustained production from an un-stimulated completion and it was also the only completion that was drilled with no barite in its mud.

Recent scanning electron microscopy and mercury injection analysis of core samples mean we know what size the pores in the reservoir rock are and that means we can use just the right size of weighting material in the mud so they sit on top of the pores and are not pushed inside, blocking the pores, explained Eng. With the new muds, the well should achieve commercial rates unstimulated and that would be the best possible outcome.

The well will also provide key information to help optimise completion design. RPS Energy reckons horizontal wells will be the best solution, rather than fraccing, with Eng putting the price tag on a horizontal well at around 4 million. The key now is to drill this well and deliver unstimulated flow from the tight reservoirs: results are due in January and, depending on the outcome, could mark a very happy start to the New Year.

Good find Prose, and a positive read imo..

I like the comment about drilling mud.

What does it tell you ?

Well, as we know Crosco have been drilling lots of tight gas wells for Falcon in nearby Hungary and have pretty much got it down to an art form now, with early failure and later success.

Now AST benefits by using Crosco and can target those sweet spots with proven drilling methods......


All derisking the outcome ! :)

Yes it seems Prose we have the right company in place. hopefully should hear news shortly.

Note the love-in above is having no effect on the sp

It seems to ire some people when posters have construtive discusions you can join in DD if you'v anything construtive to say???????

Its not supposed to have any effect and will not have any effect anyway.

If you missed the chance to buy in at 3.5p like I did and filled my boots at 3.5p, tough luck, get over it.

Slovenia spud is the next news, very soon, followed by Hermrigen spud.

GB - they are jealous because others are making money and they are not, so they feel the need to be all bitchy and get personal..... LOL :)

And GB, keep on eye on SQZ.

News coming, if its good big move up, and if bad then down she goes.

Either way, its going to move in a big way, possibly a return to 100p levels on good news

Yes i was lucky to get in at 3.5 and kept topping up,Yes Prose watching SQZ..

As far as I'm aware I'm allowed to post on this thread and as such, I will put a contrary viewpoint to balance the rubbish you are espousing so that any unsuspecting PI can see for themself.

Long-term you may be right but as the monthly chart above shows, you would now be trapped in the share if you had taken the plunge. No amount of waffle will escape that hard fact.

Trapped in what ?

They are about to spud Slovenia and Hermrigen, in 3 months time the share price could be past 30p levels.

Trapped ? as they are just about to start 3 month to 6 months of lots of activity.... LOL :)

Now I know you are joking.

You may know about oilies Pro but you know sod all about the SM.

Open your eyes and take a look around.

What is it so far today Pro?

260,000 shares traded. Wow, obviously everybody can see a bargain here.

Compare to say CNR, 2m traded so far. I rest my case.

DD i would like to know what is the rubbish we'r spouting when its a fact ast are preparing to start drilling in Slovenia, and the option to get back into switzerland,obviously you missed out you'v still the opportunity to get in!!!!!!!!!!!!!!

Why should there be volume today ? The volume will come with the drill bit.

The drilling is to start soon, PG-11 first and then Hermirgen...... when Mr Drill bit is busy volume will increase.......

AST makes the "5 to Watch List at Stocko"


http://www.stockopedia.co.uk/content/five-to-watch-kalimantan-angel-ascent-matra-berkeley-50837/


.

Well Pro we'r not watching we'r investing thats how to make money!!!! G L..

Strange how gb and Pros both disappear together.

Must be love I guess ....

I'v gone nowhere DEALERDEAR!! other things to do pity you have'nt ... waiting patiently for the news to come in.