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Ascent secures drilling permits for two wells at Peneszlek, PEN-105 flows at 2.75 mmcf/d

Last updated: 09:59 04 Dec 2009 GMT, First published: 10:59 04 Dec 2009 GMT

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Europe focused oil and gas developer Ascent Resources (AIM: AST) said production testing on the PEN-105 well on its Nyrsieg South permit in Hungary initially flowed at over 78,000 cu m (cubic metres), or 2.75 mmscfd (million standard cubic feet per day) of gas per day.


The well is now shut-in, awaiting the construction of the pipeline connection to the main export pipeline. PEN-105 is expected to be on production in February next year with the company aiming to take advantage of strong gas prices in Hungary.


The drilling rig is expected to be mobilized to the Peneszlek after the issue of drilling permits for the PEN-101 and PEN-106 wells with site construction set to commence shortly.


PetroHungaria has also completed the initial testing operations on another well at the permit, PEN-104AA, where testing operations on a Miocene reservoir section commenced early this week after it was identified to be potentially gas bearings. On flow, the well produced a small quantity of natural gas with 20 cu m (cubic metres) of water. The well has a complex slotted liner completion and has experienced “substantial losses” while drilling. Ascent intends to continue testing operations when further specialist equipment can be mobilized in January.


“…the preliminary results (at PEN-104AA) are inconclusive meaning further testing is necessary to understand its potential. On the other hand, both of the two new planned wells have simple vertical profiles and therefore should be quick to drill and bring onto production on success,” said Managing Director of Ascent Jeremy Eng.


Ascent has a 45.23% interest in the Peneszlek Project through its equity interest in PetroHungaria Kft.

Other partners are; DualEx Energy (37.5%), Geomega (8%), Leni Gas & Oil (AIM: LGO) (7.27%) and Swede Resources (2%).


The company has placed 120 million shares to raise £5 million earlier this month to accelerate the development of projects that can produce near-term cash flow, intending to focus n its projects in Hungary and Slovenia in 2010, expecting the Peneszlek area in Hungary to produce gas from five wells by mid-2010 with revenues expected to increase substantially from the revenues generated from just one well in 2009.

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