Ascent Resources (AIM: AST) looks to secure funds for its Eastern European projects, seeking shareholder approval for the proposed placing to raise £6 million after the results from a 3D survey at the Petisovci oilfield in Slovenia proved to be better than expected.
The 3D acquisition covering the Petisovci and Lovaszi oil and gas fields at the Filovci project in Slovenia has been completed with two wells planned to be drilled there during 2010 with preliminary results reported to be “very encouraging” with the primary objectives defined and new untested prospects identified. Drilling plans are set to be finalised early next year with both sidetrack opportunities from existing and new wells being under consideration.
The projects in south eastern Slovenia and south western Hungary, which are now believed to have the potential to host 300 Bcf (billion cubic feet) of gas, will be the key investment focus for the company with a third survey planned for next year. The reserves are significantly greater than those at the Peneszlek project in Hungary, where production is scheduled to restart in early 2010. Cashflow from Peneszlek is expected to increase during the year and is forecast to continue for at least two years beyond.
The extraordinary general meeting to approve the proposed placing is scheduled for today.
The company has also provided an update from its operations in Italy and the Netherlands. In Italy, the Fontana-1 geological evaluation well was progressing slowly due to drilling being possible only during daylight hours on a five day per week basis, adding that the work is also weather dependent.
In the Netherlands the company has been granted the M10/11 offshore gas appraisal project by the Ministry of Economic Affairs, providing the company with an extension to the drilling decision until December 2010. Having completed the assessment of the two Rotliegendes gas prospects, work in progress includes the assessment of development options and the viability of a subsea development in the shallow near-shore environment. The licences for exploration in the M8A and P4 blocks have been relinquished.
Ascent has also reported a new farm-out initiative for the Hermirigen gas appraisal project in Switzerland. The project plans to drill an appraisal well to the Hermrigen gas discovery previously drilled by Elf Aquitane in 1982 with a number of industry partners having expressed interest in “examining the technical data in more detail.”
Shares in Ascent rose more than 2.5% this morning.