Ascent Resources (AIM: AST) attempted to defy the purge in global equities today by announcing an agreement to farm out its Cento and Bastiglia licences in Italy's Po Valley.
Australian outfit Deltana Energy agreed to a 50% farm-in, and the joint venture will see them pay the cost of the first exploration well, and if successful, the cost of a second well. Deltana will also contribute to costs Ascent have accumulated to date on the licences, and will fund the first 1.5 million euros of additional seismic data.
Ascent stated that the first well will target a Pliocene prospect on the western edge of the permits. In the last 60 years over 130 fields have been put into production in the PO Valley, making it one of the most prolific hydrocarbon regions in continental Europe.
"The terms of this farm-in confirm our belief of the exceptional quality of the Cento and Bastiglia exploration acreage. New exploration techniques have improved the chance of success in gas exploration, which in the Po Valley is already better than 1 in 4 over the period since the 1950s." stated Ascent Resources Managing Director Jeremy Eng.
Shares in Ascent slipped 3% to 28.5 pence.
Ascent Resources farms out two licences in Po Valley, Italy
Published: 01:32 01 Aug 2007 BST