www.ascentresources.co.uk
Ascent Resources plc is an independent, multi-project, European focussed oil and gas exploration and production company. Its portfolio is balanced providing access to low-risk development and revenue generating production projects, alongside exploration projects with the potential for higher returns. An experienced management team, implementing a defined development programme on primarily onshore projects, provides Ascent with a solid platform to grow and generate value for stakeholders. Licences are held in Hungary, Slovenia, Italy, Switzerland and The Netherlands.
Ascent Resources starts PEN-101 drilling at Peneszlek gas project
Ascent Resources (AIM: AST) has commenced the drilling of the PEN-101 well at the Peneszlek natural gas project in Hungary, targeting a Miocene gas formation within a structure defined on 3D seismic of the area acquired in 2008.
The well, which is located at the site of the production facilities that will be used to produce the PEN-105 gas, is planned for a total depth of approximately 1,500 metres and is expected to take about a month to drill and test. The pipeline connecting PEN-105 to the facilities and to the export pipeline is now complete and awaiting pressure testing.
Due to the close proximity of the production facilities to the PEN-101 drilling rig, PEN-105 production will not commence until PEN-101 drilling operations are finished. If successfully completed, PEN-101 can be immediately connected via the same facility to the export pipeline.
After the rig has completed the PEN-101 well, it will proveed to either drill the PEN-106 well, another Miocene prospect, or to the PEN-104 location to continue the testing of the PEN-104AA sidetrack that was suspended in December 2009.
For the PEN-104AA testing operations, the decision to use the drilling rig, rather than a dedicated workover unit mobilised especially for the testing work, is primarily due to operational restrictions on the part of the drilling contractor.
“Production in March from the Peneszlek Project will again be contributing revenues to Ascent, the PEN-101 is a relatively simple and shallow well, neither deviated nor with a multiple completion and targets a previously undrilled Miocene prospect that is very similar to the 105 proven reservoir and 106 target. As soon as the well is complete and the rig has departed production will recommence,” said managing director Jeremy Eng.
Fox-Davies Capital (FD Capital) called this a welcome continuation of the company’s strategy for the Peneszlek project and the slight delay in the start of production at PEN-105 was not material. The broker also noted the conversion of joint venture (JV) partner Geomega’s working interest in the 101 and 106 wells to a lesser carried interest, calling this a very positive change for Ascent.
The 'buy' rating was retained along with the target price of 20 pence.
