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 sees energy prices favourable as interim losses narrow
Ascent Resources PLC (LON:AST) expects the energy price outlook for Europe to remain favourable in the foreseeable future and believes its gas assets in Slovenia will be a game changer.
The comments came as it reported results for the first half to end-June 2011. Revenue rose to £1.16 million from £435,000 a year earlier, and operating loss was reduced to £1.98 million from £2.39 million in the previous first half.
In Slovenia, Ascent has a 75 percent interest in the Petišovci project alongside its Slovenian partner Geoenergo, which owns the remainder. In August the group announced the Pg-10 well confirmed the reservoir quality and potential commerciality. The appraisal well provided better than expected results and Ascent said it believed that Petišovci's gas-in-place resource estimates will increase significantly.
The project’s gas-in-place resource is currently estimated at 412 billion cubic feet P50 gas-in-place.
Ascent managing director Jeremy Eng said: “The outlook in the medium and long term for European energy prices is favourable and the successful drilling campaign during the period at Ascent's gas assets in Slovenia puts us in a strong position to commercialise what I believe will be a game changing asset for us.”
The company's primary objective is to rapidly advance the core Petišovci/Lovászi/Ujfalu tight gas project in Slovenia/Hungary. In March this year, £17 million was raised for a three well programme and so far, Pg-11A and Pg-10 have been drilled.
Later this year, the interpretation of the flow test and other technical data from the upcoming fracture stimulation and testing programme will help define the optimum route to early gas production. Ascent plans to start commercial production at Petišovci around the middle of 2012 following the installation of a CO2 reduction plant and a short pipeline connecting the wells to the national gas grid.
The permit for the Ujfalu-III well, just across the border in the Hungarian part of the project area, has not been issued yet, so the well is now expected to be drilled in 2012.
At Hermrigen and Linden in Switzerland, six appraisal prospects have been identified, and Ascent can participate with either 45 percent or 22.5 percent in the development of those reserves. A drilling permit has now been received and the wellsite construction permit was issued this week. The appraisal well on this prospect is expected to be drilled as soon as possible.
Regarding the Latina Valley exploration and redevelopment efforts in Italy, the group said four wells were originally planned at the Strangolagalli concession for later this year and next, however, the drilling permit has still not been issued and it is therefore more likely that drilling will now commence next year.
The Strangolagalli concession lies in a proven oil producing area. The project involves the redevelopment of the Ripi field, originally developed in 1960 without the benefit of any seismic data. The oil is of good quality from shallow reservoirs less than 1,000 metres deep. New seismic was acquired last year.
Production at the 48.78 percent held Penészlek gas project in Hungary from PEN-101 and PEN-105 continues to flow at approximately 1.1 million square cubic feet a day. The final expected development of the field is the PEN-105A sidetrack which will be drilled when current production from PEN-105 comes to an end.
