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 shares soar on better-than-expected flows at Petisovci
Shares in Slovenia-focused oil and gas explorer Ascent Resources (LON:AST) soared by more than 70 per cent as it reported “excellent” results from its latest well test in the country.
Ascent said gas flows from the second well, PG-10, on its Petisovci project in Slovenia were more than twice the rate expected.
Preliminary testing of the shallowest of two stages of the PG-10 well flowed at a stabilised rate of 8.5 MMscfd (240,000 m3; 1,420 boepd).
As the frac stimulation moved further away from the original well the rock quality got “better and better”, Ascent added.
Today’s result followed flows from the fracture stimulation of a first well, Pg-11A, in Petisovci that showed stabilised gas flow rate of 2.1 MMscfd.
Options to allow the production and associated cash flow generation of both the wells by mid 2012 are now being evaluated, the oil and gas explorer added.
Managing director Jeremy Eng said, "This result from Pg-10 is excellent and exceeds our expectations. It follows the commercial, although less prolific, result from the Pg-11A stimulation, and gives us confidence that redevelopment of the Petisovci field can and will now proceed.”
Stimulation work on both the Pg-10 and Pg-11A wells is now complete, with both to be recompleted during January and February 2012 and followed by further testing to better understand the long term productivity performance of the reservoir.
“There is a wealth of new information that now needs to be integrated into the redevelopment plan as our understanding of the field continues to improve," Eng said.
The Petisovci project is a joint venture between Slovenia group Geoenergo, which holds a 25% interest in the project, and Ascent, which holds 75% through a subsidiary.
Independent estimates have put the size of the field at 500 Bcf of gas with a likely recovery rate of 50%.
Eng said Ascent is aiming of revenue generation from the two wells tested already by the middle of 2012 ahead of a major expansion in following years that could see between 15-30 wells on the main development.
The field, which he says is large by European standards, already has infrastructure is already in place from preliminary production from the reservoir in 1980.
Any gas from the field will be sold in to Slovenia initially, though there may be export possibilities.
House broker finnCap said today’s announcement underpins future redevelopment of the field.
“Ascent has begun to de-risk the Middle Miocene and has made a new discovery in the deeper Miocene,” said Will Arnstein, an analyst at the broker.
“While the project remains at an early stage and requires further appraisal, we believe the shares should regain levels lost since the Pg-11A well results were announced on 2 November in the short term and trade at a premium to 5p in the coming months.”
Shares rose by 1.2p to 2.85p, where Ascent is valued at about £29 million.
