The Petišovci/Lovászi Project Area covers some 200 sq km and straddles the Hungarian-Slovenian border with Petišovci largely on the Slovenian side and Lovászi largely on the Hungarian.  The Company believes that the project, with its potentially high levels of recoverable gas, has the opportunity to be the largest asset in its portfolio and believes this to be a unique project for onshore Europe, due to its scale and risk reward profile.  The Company recently announced an independently verified P50 estimate of gas-in-place of 412 Bcf (11.7 Bm3; 68.7 MMboe).  Importantly for development, the area is serviced by excellent infrastructure and has existing gas pipeline connections.  Additionally, the regional gas price is strong, with a current price of c.$9.00 per Mscf being achieved in Hungary and a premium to this price expected in Slovenia.

Ascent, in the last 18 months, acquired 3-D seismic surveys that cover the entire area.  The data has been processed and interpreted and the resulting structural interpretation of the main targets is significantly different from the previous 2-D geological model.  The structures have two sets of reservoirs, the shallower Pontian and the deeper Miocene.  The Miocene reservoirs are Ascent's development objective as the shallow reservoirs were extensively developed during the 1960s and are considered to be almost fully depleted.

In the middle of February 2011 the Company announced the successful completion of the first phase of operations on the Pg-11 well.  Gas was confirmed in all six Middle Miocene Badenian reservoirs.  In addition, gas and condensate were sampled from the Lower Miocene Karpatian reservoir and gas flowed for the first time from the shallowest 'A' sands.  The new data generated from the Pg-11 well, including three 18m core samples and state-of-the-art wire line logging, supplements the recent 3-D surveys recorded across the whole 200 sq km project area and enables the Company to move forward with the second phase of the well programme focussed on a horizontal production side track.

Following our December 2010 acquisition of EnQuest's 48.75% holding in the area we now have a 75% interest in the Petišovci field.