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Ascent sells stake in Hungarian gas field

Last updated: 17:44 04 Nov 2010 AEDT, First published: 18:44 04 Nov 2010 AEDT

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Ascent Resources (LON:AST) said it has completed the sale of a 20.2 per cent stake in the Nyírség Szatmár permits in Hungary, which contains the Görbeháza-1 gas discovery. 

The company will initially receive US$300,000 as well as pro rata payments of US$300,000 per billion cubic (Bcf) gas once production exceeds 1 Bcf. 

Ascent's managing director, Jeremy Eng, said, "The exploration licence for the area has now expired and as the production from the GH-1 well is operated and produced by HHE and JKX through its neighbouring field facilities, it makes good sense for Ascent and the other minority partners to monetise this discovery rather than to wait for the gas to be produced.  

"As we had mentioned previously, the benefit of 3-D seismic was instrumental in making this discovery and the PetroHungaria partners farmed out the Panhandle area to HHE and JKX for the cost of the 3-D seismic acquisition."

Proceeds from the sale to Hungarian Horizon Energy and London-listed JKX Oil & Gas (LON:JKX), which operate the nearby Hajdúnánás gas field, will be used to develop the company’s European assets.

Ascent sold its Swiss business earlier this year, but has the right to back into the project at cost. 

It also has a promising oil project in Italy and must decide whether to use or lose an oil exploration licence in the Netherlands. 

However, the Petişovci-Lovaszi gas project in Slovenia is crucial to its immediate prospects of the company and could transform it completely.

The publication of a report by RPS Energy provided independent corroboration of Ascent’s own work by confirming a P50 gas-in-place estimate of 412 billion cubic feet.

If the reserves are proved up, then Petişovci-Lovaszi will be one of the biggest onshore gas fields in Europe.

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