June 2008 Presentation : Link here

March 2008 AST Write Up : Link TMF Post Ascent Article Archive Folder : Link to AST archive folder

Detailed Info on Italian Prospects : Link to post 2 (Explo.)

Detailed Info on Swiss Prospects : Link to post 3 (Explo.)

Detailed Info on Spanish Prospects : Link to post 4 (Prod. + Explo.)

Detailed Info on Dutch Prospects : Link to post 5 (Explo.)

Detailed Info on Hungarian Prospects : Link to post 6 (Prod + Explo.)

Detailed Info on Slovenia & Gabon Prospects : Link to post 7 (Explo.)



Web Site : http://www.ascentresources.co.uk

Email : info@ascentresources.co.uk

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Oil and Gas Guide for those who want to know more : Link to PDF file

PapalPower: thanks for the info - again. What attracts me to this share is that there are several projects going on at once, at various stages and in different geographical areas - some with huge potential if all goes well. So: one to hold on to.

PapalPower: will you be attending the Presentation in London tomorrow? I can't get there alas but, if anyone does go, it would be great to have a brief summary here!

Not me, but I will keep an eye out for any reports, and post them here if we get some.

Thanks

Post from AFN :

bobobob5 - 20 Sep'07 - 16:29 - 15559 of 15588

Just got back from Oilbarrel. I thought Jeremy Eng's presentation was pitched just about right: it didn't focus too much on Anagni, but instead covered the breadth of what is a pretty broad exploration portfolio. A few key points I took in notes:

* the primary funding strategy is farmouts
* AST like the stability of gas prices (compared to oil)
* small European discoveries can prove economic
* the portfolio is "evenly spread"
* by the end of 2009, half the portfolio will still be left to explore
* Nyirseg: the field had produced in the past, doing seismic over 100 sq.km.
* Switzerland held up by rig shortages, plan to get a rig on it by end 2008
* Slovenia: talked about big potential, but reservoirs can be difficult
* Anagni: the 50 metre interval leaked mud into the fractures, 3000 tons (20,000 barrels) initially lost, remedial work cut the further loss to 500 tons in the subsequent drilling, the original estimate was 5% dolomite porosity but this was found to be 15%, the % of dolomite was high, 40% of fluid recovered so far, expect most of the fluid (i.e. another decent slice of the remaining 60%) needs to be recovered before knowing the facts about the oil (or whatever), oil staining in fractures in the recovered samples despite being 'washed' for 3 days by the drilling fluid, no gas seen, indications of live oil.

My impression was of a competent outfit, getting on with the job.

but imho DYOR etc as always

The Oil Barrel Presentation Slides are now available to view, link below :

http://www.ascentresources.co.uk/investor_information/Ascent_Oil_Barrel_2007.pdf


.

Summary in the yellow box updated :

Summary:

Producing 100-120bpd with reserves of 0.5MMbbl in Spain, and planning the development of a 3-well field in Hungary. Two wells currently producing minor amounts of oil and gas in the Bascja field are expected to be recompleted, using horizontal drilling, by the end of the year, and immediately put on production.

Drilling fluid recovery is ongoing at anagni (at 200bpd)- once this is complete testing will begin on the prospect. A break (est 3 weeks) in drilling fluid recovery is expected end of October whilst a new testing permit is acquired. Estimate for drilling fluid recovery to end approx mid-December.

Producing:

Spain, Ayoluengo (88.75%). The field is currently producing at around 110bpd from reserves which were acquired at $6/bbl (with estimated reserves of 0.5MMbbl). Profits are sufficient to cover administrative overheads. Production from current wells is in decline but bringing new wells on-stream has maintained production, which may improve through the year with the introduction of new production technology and enzyme treatments.

Testing:

Italy, Anagni (80%). Drilling at anagni confirmed the presence of a carbonate platform from 865m to total depth (1355m), with oil shows from 905m down. Of the 450m intercept dolomitised zones with over 10% porosity totalled over 140m. Total loss of circulation was experienced throughout the drilling and due to its fractured nature core recovery was poor, although all cores recovered had traces of oil. The fluid lost is currently being recovered (along with small traces of oil) at 200bpd using a 'nodding donkey' pump.


Development plans:

Hungary- Nyirseg (54.45%)- This field has three commercial wells which are being included in the current development study, with the aim of initial production in H1 08. Pen-104 (which flowed at a restricted 3.4MMscfd) was discovered by AST, and its success has opened up the possibility of developing two former discoveries, Pen-12 (which has an estimated 2bcf recoverable), and Pen-9 (which has an estimated 26bcf recoverable).

Hungary- Bajsca (45%)- Tight gas redevelopment project in partnership with MOL; technical studies have confirmed the economic viability of the project using horizontal recompletion techniques. The first two of these recompletions will be commenced in December 07 (PetroHungaria (90% owned by AST) to drill the wells with MOL providing the infrastructure).

Exploration to date:

In the Nyirseg permit (Hungary, 54.45%) we have had one commercial discovery from a four well drilling program. This was Pen-104: the target which flowed had a Most Likely size of 2.3bcf, but given the high flow rate this is likely to be revised upwards. The other three wells had varying results. Vam-1 hit good quality gas but not enough to suggest a commercial reservoir, so was P&A. FGY-2 hit water in a reservoir quality interval; this was encouraging enough to have the company plan to drill nearby at FGY-1 in the next round of drilling. Pen-102 intercepted a fault system en-route to the target Miocene tuffs (which contained only residual gas). The fault system was subjected to a well seismic survey with the intention of planning a sidetrack with the objective of entering the Miocene gas reservoir in a more favourable location at a later date.
3-D seismic acquisition planned over field area

In the Sedano Basin permit (Spain, 50%) we drilled a single well, Hontomin-4, which did not find oil, suggesting a lack of a successful seal in the area.

In Italy we have had a non-commercial gas well at Fiume Arroe and testing is ongoing at the "encouraging" Anagni well.

Other plans:

Quick Summary of present pending drills to 2009 (schedule will be added to and ammended as time goes by) :

Hungary - Bajsca - 2 Horizontal recompletions to start in Dec 2007
Italy Frosinone - Anagni - 2 drills to be done for oil
Italy Frosinone - Veroli - 1 well to be drilled for oil.
Italy - Bastiglia - 2 wells to be drilled for gas in H2 2008.
Swiss - Bern 2 - 1 well to be drilled in Q4 2008 for gas.
Holland - M11 - 1 well to be drilled in 2009 for gas
Holland - M8 - 1 well to be drilled in 2009 for gas.

Spain- Rocamundo- an application has been made for this exploration license (to the north west of ayoluengo) with Tethys and Shesa.

Spain, Sedano Basin, Basconcillos H, Tozo-1 well (50%), oil target drilled by Chevron in 1965, which flowed several hundred barrels over a five-month period and also contains an un-tested gas find.

Italy- Po Valley (49%)- Deltana will pay the cost of the first exploration well (and if successful the second) on the 130bcf Gazatta-1 prospect. Second prospect would be Palazzo-1, target 116 Bcf. Well location permitting is currently underway. Deltana have also contributed to historical costs and will pay the first 1.5 million euro's of seismic expenditure on the permits. First two prospects to be drilled in H2 2008.

Switzerland (90%)- (in Vaud) an oil exploration permit containing a 1962 oil discovery at Essertines and (in Bern) two gas exploration permits containing a gas discovery each (Linden, 1972; Hermrigen, 1982); all three also contain unexplored Triassic potential. The results of the prospectivity report, created by reprocessing seismic data, acquiring new seismic surveys and geochemical analysis, were integrated into a new geological model. The next stage of finding suitable drilling locations has commenced and wells will be drilled in Q4 2008.

Holland (45.75%)- Four offshore licences covering a total of 795 square kilometres. One of these (M11) contains a discovery from 1982 which flowed at 2MMscfd; with technological improvements this may be increased towards commerciality. A 3D seismic survey requires reinterpreting, and geological and geophysical work is underway. Drilling is planned for 2009/2010 depending on rig availability.

Slovenia, Petisovci Globoki (15.75% and operator)- This field is considered as an extension of the Bajsca tight gas field in Hungary. One well previously drilled, D-14, intersected minor gas and water (only produced after three fracture stimulation attempts), but when deepened deeper reservoirs with estimated P50 gas in place of 579Bcf had strong gas shows which did not produce from an open-hole test (fracture stimulation was not attempted). Preliminary engineering studies are ongoing.

Slovenia, Petisovci Dolina (45% and operator)- total 2P reserves of 10.7mmbl.

Other interests:

In Gabon, after some shrewd investment (receiving back costs and 404,350 Afren shares), we have a 1.75% net profits royalty in two Production Sharing Contracts (the Iris Marin and Themis Marin, both operated by Sterling Energy). Both have extensive 2D and 3D seismic. Themis Marin is the more advanced licence which is scheduled to be drilled in Q3, while the seismic for Iris Marin is being processed with results due later this year.

AST have purchased 22.5% of an Italian drilling contractor. The company currently has one 2000m+ rig, and will acquire a 3,600m-capable rig by mid-2008. AST expect to utilise these rigs for around 20% of their operational time.

Total shares in issue 301,167,591

Large Shareholdings (total 52.8%):Company/Individual Holding %age
Credit Suisse Nominees (RAB) 62,622,619 20.79%
R B Rowan 25,000,000 8.30%
Tiger Resource Finance 24,093,406 8.00%
Slater Investments 22,914,679 7.61%
HSBC Global Custody Nominee (AXA Throgmorton Trust) 14,000,000 4.65%
FMR Corp 10,763,100 3.57%
HSBC Global Custody Nominee (AXA UK Smaller Companies) 10,000,000 3.32%
Roy Nominees ltd (Majedie Investments) 9,565,789 3.18%
Mellon Nominees (UK) ltd 6,315,789 2.10%
HSBC Global Custody Nominee (AXA SEI UK Equity) 4,180,000 1.39%


Director Shareholdings (total 1.51% of shares in issue and 23m options at an average price of 8.45p):

J P Kenny 100,000 500,000 options at 10.5p by 28-12-10

J V L Legg 533,526 500,000 options at 5p by 28-06-10; 1,000,000 options at 15p by 23-09-10; 1,000,000 options at 40p by 23-09-10; 500,000 options at 10.5p by 28-12-10

P R S Earl 50,000 500,000 options at 11.5p by 15-05-11

N S J Moore 119,500 500,000 options at 9.5p by 28-06-11

M D J Groom 1,597,750 1,000,000 options at 5p by 28-06-10; 1,000,000 options at 15p by 23-09-10; 1,000,000 options at 40p by 23-09-10

J Eng 2,000,000 10,000,000 options at 5p by 1-03-10

P A F Heren 500,000 options at 11.5p by 10-11-10

Answers to some questions that were raised prior to the OB and Proactive conferences and presented to Jeremy Eng at the Proactive conference to be answered.

Thanks to the Proactive Team ( http://www.proactiveinvestors.co.uk ) for asking them on our behalf.



"Hi PP,

Answers here:

1/ The earlier Swiss drills (not by Ascent) were to depths exceeding 2km, do we take it therefore that the first drill by Ascent will be shallower than 2km based on the rig available ? or ref Q2.

= The first well will, most likely be an appraisal of one of the gas discoveries and therefore greater than 2km



2/ Will the first Swiss drill be in Q4 07 ? or will it likely slip into Q1 08 ? or will it have to wait until the new deeper drilling rig is obtained by Ascent Drilling ?

= It will have to wait for the new rig



3/ The first Swiss drill, will it be for gas or for oil ? Which prospect is likely to be first up, Bern-1, Bern-2 or Vaud ?

= Gas in Bern



4/ Page 27, annual report, Director's report.
" At end of the first drilling programme, due for completion in Q2 2007, the Company plans an independent reserves valuation of the portfolio to record proved (P1), probable (P2) and possible (P3) reserves

What is the progress towards this?

= It is planned for release with 2007 Final results



5/ Whats happening in Spain, everything seems to have ground to a halt in terms of further exploration or flow enhancements, will you look at selling off the Spanish assets now that Italy is becoming of more importance to Ascent ?

= N/A


6/ Hungary, Bajsca....based on your projections for the feasibility study...what is the expected average cost per well ? based on a well being commercial and having whatever mean expectation flow rate you expect, what will be an estimated time period for ROI, and also expected mean well life time ?

= MOL have stated that Phase 1 could produce 80k cu.m per day from two wells



7/ It has been said the oil produced at Ripi (by your partner in the Anagni well) is of the type associated with deeper reservoirs, is the oil type at Anagni the same type as at Ripi ?

= Similar


8/ Assuming Anagni is commercial.....is there a high chance of further commercial structures in the Anagni to Ripi area ? and also on the Fosinone license area ?

= Very good potential


9/ You have been quoted in the past as preferring "gas over oil", is this still the stance ? and if so, why ?

= Stability of the gas markets in Europe (excluding UK)



10/Quote*****"July 2005 saw the purchase of Vintage Petroleum Italiana, now renamed Ascent Resources Italia, which has 100% of two gas exploration permits in the central part of the Po Valley. ....
Ascent paid $2.6m in cash for Vintage. This included working capital, coupled with drilling equipment and inventory sufficient for three wells. The vendor, Oklahoma based Vintage Petroleum Inc., has the right to buy back in for a 30% interest until end 2009, as well as the right to recover 75% of its past losses from any future revenues"*****Unquote


10a/ What happened to the drilling equipment and inventory - has this already been used up on other AST wells?

= Quite a lot of it has


10b/ We never saw anything about this farm-in clause in the Envoi Po Valley dataroom document, or in the annual report, or in the RNS regarding Deltana. Does this mean that AST will effectively own just 20% of the Po Valley acreage if Gazatta is successful and Vintage want to exercise their option. Or would it drop AST from 50% to 35% (i.e. 30% of AST's 50%). Or has this option already been terminated?

= N/A


11/ Financing for the Bajsca project, how are you intending to address the financing required to get this project underway in Q4 ? Do you have the required monies for the initial start up ? or will look to raise money by either debt, equity issue or asset sale ?

= N/A


12a/ Slovenia assets are frequently quoted as "producing a small amount of oil and gas". Please define "small amount" in terms of boe/day to AST

= There is currently no production attributable to the Ascent Slovenia assets


12b/ Ref to Solvenia, what is the timetable for activities in P-D - are there plans for re-development and hence increasing cash flow through existing facilities?

= Yes


13/ How is the commercial devlopment in the Nyriseg permit of the Peneszlek discovery and pre-existing appraisal re-entries progressing? Will there be first gas sales in 2007?

= There have been some delays with pipeline works and 2007 is now probably not achievable

Answers to some questions that were raised prior to the OB and Proactive conferences and presented to Jeremy Eng at the Proactive conference to be answered.Thanks to the Proactive Team ( http://www.proactiveinvestors.co.uk ) for asking them on our behalf.

My comments on them would be that some of the questions we knew there would be no answer too, however, the oil being "similar" to Ripi is good to hear as the potential remains that the Anagni structure is the big deep one from which some oil was pushed up and into the shallow Ripi sands - and also the reason behind the Ascent Drilling investment could well be due to the requirement to be very busy in Italy in the years to come - not developing this Anagni structure and surrounding license area, but also Po Valley.



"Hi PP,
Answers here:

1/ The earlier Swiss drills (not by Ascent) were to depths exceeding 2km, do we take it therefore that the first drill by Ascent will be shallower than 2km based on the rig available ? or ref Q2.

= The first well will, most likely be an appraisal of one of the gas discoveries and therefore greater than 2km


2/ Will the first Swiss drill be in Q4 07 ? or will it likely slip into Q1 08 ? or will it have to wait until the new deeper drilling rig is obtained by Ascent Drilling ?

= It will have to wait for the new rig


3/ The first Swiss drill, will it be for gas or for oil ? Which prospect is likely to be first up, Bern-1, Bern-2 or Vaud ?

= Gas in Bern


4/ Page 27, annual report, Director's report.
" At end of the first drilling programme, due for completion in Q2 2007, the Company plans an independent reserves valuation of the portfolio to record proved (P1), probable (P2) and possible (P3) reserves What is the progress towards this?

= It is planned for release with 2007 Final results


5/ Whats happening in Spain, everything seems to have ground to a halt in terms of further exploration or flow enhancements, will you look at selling off the Spanish assets now that Italy is becoming of more importance to Ascent ?

= N/A


6/ Hungary, Bajsca....based on your projections for the feasibility study...what is the expected average cost per well ? based on a well being commercial and having whatever mean expectation flow rate you expect, what will be an estimated time period for ROI, and also expected mean well life time ?

= MOL have stated that Phase 1 could produce 80k cu.m per day from two wells


7/ It has been said the oil produced at Ripi (by your partner in the Anagni well) is of the type associated with deeper reservoirs, is the oil type at Anagni the same type as at Ripi ?

= Similar


8/ Assuming Anagni is commercial.....is there a high chance of further commercial structures in the Anagni to Ripi area ? and also on the Fosinone license area ?

= Very good potential


9/ You have been quoted in the past as preferring "gas over oil", is this still the stance ? and if so, why ?

= Stability of the gas markets in Europe (excluding UK)


10/Quote*****"July 2005 saw the purchase of Vintage Petroleum Italiana, now renamed Ascent Resources Italia, which has 100% of two gas exploration permits in the central part of the Po Valley. ....
Ascent paid $2.6m in cash for Vintage. This included working capital, coupled with drilling equipment and inventory sufficient for three wells. The vendor, Oklahoma based Vintage Petroleum Inc., has the right to buy back in for a 30% interest until end 2009, as well as the right to recover 75% of its past losses from any future revenues"*****Unquote

10a/ What happened to the drilling equipment and inventory - has this already been used up on other AST wells?

= Quite a lot of it has


10b/ We never saw anything about this farm-in clause in the Envoi Po Valley dataroom document, or in the annual report, or in the RNS regarding Deltana. Does this mean that AST will effectively own just 20% of the Po Valley acreage if Gazatta is successful and Vintage want to exercise their option. Or would it drop AST from 50% to 35% (i.e. 30% of AST's 50%). Or has this option already been terminated?

= N/A


11/ Financing for the Bajsca project, how are you intending to address the financing required to get this project underway in Q4 ? Do you have the required monies for the initial start up ? or will look to raise money by either debt, equity issue or asset sale ?

= N/A


12a/ Slovenia assets are frequently quoted as "producing a small amount of oil and gas". Please define "small amount" in terms of boe/day to AST

= There is currently no production attributable to the Ascent Slovenia assets


12b/ Ref to Solvenia, what is the timetable for activities in P-D - are there plans for re-development and hence increasing cash flow through existing facilities?

= Yes


13/ How is the commercial devlopment in the Nyriseg permit of the Peneszlek discovery and pre-existing appraisal re-entries progressing? Will there be first gas sales in 2007?

= There have been some delays with pipeline works and 2007 is now probably not achievable

You've been busy, PP - many thanks for all this! (Do you not need to sleep??)

Yes, sometimes :)

Turkey seems a new driver for higher oil prices, along with the US data etc......bring on 100$ a barrel soon I hope :)

http://www.resourceinvestor.com/pebble.asp?relid=36518

...................................................Crude oil prices have shot up to levels above $83 per barrel as other discerning news emerged at the same time. Turkish threats to start a major military operation in Iraqs Kurdistan, largely to destroy the military bases of the Turkish-Kurdish rebels of the Kurdistan Workers Party (PKK), could result in a major destabilization of the whole region.

Turkish military operations have been halted the last two years, as the U.S.-led coalition in Iraq has prevented this to happen. PKK forces have been able to feel rather safe in Iraqs Kurdistan, which has become a defacto independent region, ruled by Kurdish parties that are still part of the Baghdad government. American officials have warned that they will not allow Turkish forces to enter Iraq to quell PKK operations the next months.

A major political confrontation already has been brewing between Ankara and Washington, as Turkish generals have been preparing to invade Iraq openly. At the same time, a U.S. House of Representatives vote on the Armenian issue has ended in a declaration that the killings of hundreds of thousands of Armenians by Turkey at the end of World War I was genocide, putting additional oil on the fire.

The coming months will continue to be volatile, as crude oil does not seem to be heading to a slowdown. Price levels will keep high, as market fundamentals only show a tendency for further constraints.

I see you've been busy, PP, here and on other threads - many thanks for the updates; very helpful.

We know the extended extension testing permit expires end of the month. We also know its more than likely going to have to expire before it can be applied for again, as its already been extended once (might even be twice).

Therefore next week or the week after we should perhaps get news on progress, along with the statement that testing is temporarily stopped whilst a new testing permit is applied for and received.

wonder if bruce rowan sold out at 30p.. just bought into his tiger resources...nav 50% discount to sp

No - there has been no recent change of large holders holdings.

Investment funds, like TIR, always trade at a big discount to NAV, its normal, as the market factors in the fact that if the fund were ever to try to sell their shares, they would force the price down and so can never get the share price as quoted.......and its why therefore trade at a big NAV discount.

Excellent news, and as I have been suspecting, and also why JE did not answer my question on whether they were selling Spain.......obviously he could not answer ;)

Good business, cash in the bank now nicely up and ready to roll with Bajsca in Hungary in December.

Also note the comment from JE " Importantly, it is expected that during 2008, revenues from gas production in Hungary will more than replace the oil sales revenues from the Spanish production."




Ascent Resources PLC
25 October 2007
Ascent Resources plc ('Ascent' or 'the Company')

Agreement to Sell Spanish Oil Assets and Farm-out of First Swiss Project

Ascent Resources plc, the AIM-traded oil and gas exploration and production company, has entered into an agreement to sell its oil assets in Spain and to farm-out up to 40% of its 90% interest in the Seeland-Frienisberg Permit in the Canton of Berne in Switzerland, to AIM listed Leni Gas and Oil Plc ('LGO').

Under the proposed agreement, LGO will purchase Ascent's Spanish oil assets and the entire issued share capital of Ascent's wholly owned subsidiary Compania Petrolifera de Sedano ('CPS'). These assets have a book value of 321,000 and have an operating profit from production of 241,000. The consideration of 2.25 million and 8 million ordinary LGO shares will be partially used to repay outstanding intercompany loans in Spain.

Ascent's Spanish oil assets include 88.75% of the Ayoluengo field in the La Lora concession and CPS, which has a 50% interest in three exploration licences, Huemeces, Basconcillos-H and Valderedibles. These licences are held on a 50:50 basis with Tethys Oil AB of Sweden. This divestment is in line with Ascent's strategy of focussing on its gas assets, which the Board believes provides greater stability due to the strength of the mainland European gas market. The acquisition of these assets by LGO constitutes a reverse takeover under the AIM Rules and is therefore conditional (inter alia) upon LGO gaining approval from its shareholders.

Ascent is retaining a presence in Spain with its 50% interest in the Rocamundo gas exploration application, where the Company's partners are Tethys Oil and Shesa, the Basque oil company, who have a 30% interest and a 20% interest respectively. This exploration permit is expected to be issued later this year.

In Switzerland, Ascent has conditionally agreed to farm-out up to 40% of its 90% interest in the Seeland-Freinisberg Permit in north-western Switzerland to LGO. Schweizerisches Erdol AG ('SEAG') is the concession holder with a 10% interest.
Under the terms of the farm-out, LGO will fund the costs of the drilling and testing of the first well in the exploration permit. Expenditure on subsequent exploration and production activities in this permit will be funded on a working interest basis. If LGO takes up its full 40% interest, it will additionally have the right of first refusal to participate in Ascent's other two Swiss projects on the same terms.

The 363.5 square kilometre surface prospecting permit was awarded in July 2005, and the first exploration phase expires on December 31st 2007 with a three year extension pending. The first phase work commitments which have been completed, includes a spectral acoustic seismic trial, geochemical field studies and integration of the existing geological and geophysical data.

In 1982, Elf drilled the Hermrigen-1 well within the area of the permit to a total depth of 2,425m in Triassic salt. Gas shows were encountered in the lower carbonate section of the Keuper and a test in the section of the well flowed gas at an initial rate of 1.5MMscfd decreasing to 0.62MMscfd after 15 hours.

The Competent Persons Report commissioned by LGO, states that Gross Contingent Resources associated with the Hermrigen-1 discovery well are between 10.7 Bcf and 21.2 Bcf and that six other prospects in the permit have Prospective Resources totalling between 347.7 Bcf and 676.5 Bcf. The partner group will choose the location of a well designed to prove commercial gas reserves in this permit. Subject to regulatory approval, it is planned to drill this well using the new build, low environmental impact hydraulic rig of Perazzoli Drilling, a drilling contractor in which Ascent has acquired a 22.5% interest.

Ascent Managing Director Jeremy Eng said, 'The divestment of Ascent's Spanish oil assets follows both the Company's strategy of preferentially developing its gas projects as well as its belief that these properties are non-core compared to the potential of the other opportunities in Ascent's portfolio. Importantly, it is expected that during 2008, revenues from gas production in Hungary will more than replace the oil sales revenues from the Spanish production.

'The Swiss farm out allows us to progress this project and build our confidence in what we believe has the potential to be a major central European gas play.Both of Ascent's exploration permits in Berne have proven gas discoveries and the third party report confirms substantial appraisal and exploration prospects. We look forward to working with LGO in an exploration programme to quantify the Prospective Resources estimates, which in only the first of three permits, stands at between 348 Bcf and 676 Bcf of gas.'


The information contained in this announcement has been reviewed and approved by Gavin Ward, Ascent's Exploration Manager (member of the AAPG) who has 19 years relevant experience in the oil and gas industry.

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1193709900&feed=oilbarrel_en

30.10.2007

Ascent Resources Sells Up In Spain And Gains Momentum In Switzerland Through Two Agreements With AIM Newcomer Leni Gas & Oil

Two years ago Ascent Resources acquired a series of interests in Spain, including the producing Ayoluengo oilfield and the surrounding exploration permits. Last week the AIM company announced the sale of its Spanish portfolio to AIM start-up Leni Gas & Oil, which is paying 2.25 million and eight million shares for the interests in a deal valued at just over 2 million.

This is a good deal for Ascent. The Spanish assets never delivered the upside the company was looking for but the Ayoluengo field, with its dribble of production (around 110 barrels per day generating operating profit of 241,000), kept the lights on and provided it with the credentials of an onshore operator, something that has been key as the AIM firm has built a portfolio that now encompasses more than 20 projects spanning six European countries. As that portfolio has grown over the last two years, the Spanish assets have looked increasingly non-core and something of an oddity in a portfolio heavily weighted to the European gas markets.

It doesnt expect to miss the Ayoluengo cash flows. It is expected that during 2008, revenues from gas production in Hungary will more than replace the oil sales revenues from the Spanish production, said Ascents managing director Jeremy Eng.

Ascent isnt turning its back on Spain. It has a 50 per cent interest in an application for the Rocamundo gas exploration permit, which it hopes will be issued later this year. Its partners here are Tethys Oil with 30 per cent and Shesa, the Basque oil company, with 20 per cent. The targets for gas exploration are in the deeper Triassic formations that underlie the Triassic salt, the oil production comes from the shallower Jurassic horizons.

The second part of the agreement with Leni is for the farm out of up to 40 per cent of its 90 per cent owned Seeland-Freinisberg permit in the north-west of Switzerland. This is another good move for Ascent as its Swiss exploration project has long been on hold, mainly due to rig shortages. This frustrating hardware-crunch is something Ascent has, at last, side-stepped by its acquisition earlier this year of a 22.5 per cent stake in an Italian drilling company, Perazzoli, which owns one rig and has a newbuild on order, giving the explorer access to rig time plus revenues from drilling contracts. With rig time assured, Ascent now has a partner prepared to cover the costs of a first exploration well on the permit.

The 363.5 sq km Seeland-Freinisberg permit was awarded in July 2005 and the first exploration phase expires on December 31st 2007. Ascent has completed the first phase work commitments, which included a spectral acoustic seismic trial, geochemical field studies and integration of the existing geological and geophysical data.

The companies will together decide the location of the first well in the permit. It is likely to be a follow-up Elfs 1982 Hermrigen-1 well, the only well so far drilled in the permit and which reached a total depth of 2,425 metres, encountering gas shows in the lower carbonate section and flowing at an initial rate of 1.5 million cubic feet per day. The Competent Persons Report commissioned from TRACS by Leni puts the gross contingent resources in the Hermrigen-1 discovery well between 10.7 bcf and 21.2 bcf. This is promising despite the fact the flow rate rapidly tailed off to 620,000 cf/d after 15 hours due to a suspected mechanical failure in the well.

More promising is the fact that six other prospects have been identified on the permit, which the TRACSs Competent Persons Report reckons to hold prospective resources of between 347.7 bcf and 676.5 bcf. Ascent has two more exploration permits in Switzerland and if Leni exercises its option to take a full 40 per cent of the Seeland-Freinisberg permit then it has first right of refusal to farm into these permits too.

Eng said he believed the Swiss project has the potential to be a major central European gas play. Both of Ascent's exploration permits in Berne have proven gas discoveries and the third party report confirms substantial appraisal and exploration prospects, said Eng. As always, the proof will lie with the drillbit but as a result of last weeks deal-making that proof now lies a little closer...

Waking up a bit from its slumber :) Perhaps an update might be coming ? then again, maybe not.

Well, an update should be coming this week or next imv, we should be on for news of any extension to the testing permit at Anagni-1, or the plans to extend it, and also we should, as they should be now around 75% drilling fluid extracted, give us a tantalising update on Angani-1, maybe the oil shows are increasing ?

Who knows, given that A-1 is a flank well, its highly likely that A-1 will not be commercial, but the next two, A-2 and A-3 should be highly commercial all being well.

So, a flowing A-1 should be seen as a bonus, and not the expected outcome.

Roll on some news.