Divestment
14 April 2008
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
Ascent Resources plc ("Ascent" or "the Company")
Hungarian Divestment
Ascent Resources plc, the AIM-traded oil and gas exploration and production
company has agreed to divest an interest in two of its Hungarian gas development
projects to fellow AIM Company Leni Gas and Oil plc ("LGO"). LGO will purchase a
7.27% interest in PetroHungaria kft and a 14.54% interest in ZalaGasCo kft from
Ascent for a cash consideration of ?2 million.
PetroHungaria kft ("PetroHungaria") owns a 100% interest in the Peneszlek gas
development project in the Nyirseg exploration permits in eastern Hungary while
ZalaGasCo kft owns a 50% interest in the Bajcsa gasfield redevelopment project
in western Hungary. On completion of the divestment, Ascent will have a 45.23%
interest in the Peneszlek project and a 38.73% interest in the Bajcsa project.
The Peneszlek gas development project is centred on the development of the
PEN-104 discovery that was drilled and tested by PetroHungaria in 2006. A
workover rig has just finished completing and re-testing this well and the
production facilities are scheduled to be delivered later this month. The
completion testing confirmed the excellent productivity of the PEN-104 well and
production will commence once the hook-up to the pipeline is completed and
authorisations received. In addition to the planned tie-in of the PEN-9 and
PEN-12 wells, further appraisal of the area will be undertaken with the
acquisition of approximately 100 sq km of 3-D seismic, including the area of the
partially depleted Peneszlek field, which is a candidate for re-development.
The Bajcsa gasfield redevelopment project is a 50:50 joint venture with MOL RT,
the leading Hungarian oil and gas company. The joint venture will undertake the
redevelopment of the Bajsca gasfield with the drilling of horizontal wells in to
the proven productive gas reservoirs. The first two wells are planned as
re-completions of existing wells and the operations will commence as soon as the
drilling permits are issued. Work has already commenced to enable access to the
well sites. As these wells were previously on production they are already
connected to the field gas processing facilities and therefore production can
start immediately they are completed.
In a modification to the previous agreement with LGO regarding the farm-in to
Ascent's Hermrigen gas appraisal project in Switzerland, Ascent have agreed to
grant LGO the option to take a 10% participating interest in this project and in
the Seeland Freinisberg Exploration Permit for a further payment of ?2 million
payable on the date of the exercise. This two year option may be withdrawn by
Ascent at its sole discretion, so long as it has not already been exercised.
Jeremy Eng Ascent's Managing Director said, "We are pleased to welcome Leni Gas
and Oil as a partner in our Hungarian development projects. We aim rapidly to
develop our activities in Hungary and secure cash flow from the production and
sale of gas to the local market."
* * ENDS * *
For further information visit www.ascentresources.co.uk or contact:
Jeremy Eng Ascent Resources plc Tel: 020 7251 4905
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
Max Hartley Cenkos Securities plc Tel: 020 7397 8924
Notes
Ascent Resources plc has a diversified portfolio of some 20 hydrocarbon
exploration and development projects across six countries in Europe: Italy,
Switzerland, Hungary, Spain, Slovenia and Netherlands. Ascent's portfolio
contains a solid base of field redevelopment projects with selected exposure to
exploration upside. The portfolio is focussed on gas and with the exception of
the shallow water Netherlands project, all of its projects are located onshore
where operating and development costs are substantially lower than they are
offshore.
This information is provided by RNS
The company news service from the London Stock Exchange
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