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Ascent Resources PLC

Ascent Resources successfully acidizes PEN-101A to supplement PEN-105 production

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Ascent Resources (AIM: AST) has finished the remedial work and testing of the PEN-101 well on the Nyírség exploration permits in eastern Hungary, supplementing production and adding cash-flow from the company’s minor project. The company told investors that it has successfully acidized the PEN-101A sidetrack well, and the  well is now ready to come into production.

Testing returned fairly modest production rates of 0.769MMscfd (million standard cubic feet per day), equating to approximately 128boed (barrels of oil equivalent per day). The company said it expects the productivity of PEN-101A to carry-on improving, like the nearby PEN-105.

"Although production from PEN 101A is modest, it is expected that these wells will produce steadily for some time to come ... whilst the Penészlek project is minor in comparison to other targets in our portfolio, these revenues are expected to provide the company with positive cash flow during the remainder of 2010 and through 2011".

Ascent also highlighted that production is on-going from the PEN-105 well, at an improved rate of 2.53MMscfd (million standard cubic feet per day), with 37 barrels per day of condensate. PEN-105 produces from a similar Miocene volcanoclastic formation.

Ascent has a 48.776% interest in PEN-105 and a 51.654% interest in PEN-101A.

PEN-101 was initially drilled in February 2010 to a total depth of 1,500 metres, however during completion an acid stimulation treatment had broken through a repair to the cement isolation behind the steel casing and allowed water production from a deeper formation. 

“The PEN-101A well, which was side-tracked to bypass damaged cement, has been acidized and reperforated.  Pressure test data showed that the formation near the well bore has been damaged by the drilling process and the two stage acidization has not managed to completely restore the productivity of the well”, Ascent stated. 

Ascent Resources has interests in a diversified portfolio of hydrocarbon exploration and development projects across several countries in Europe: Italy, Hungary, 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 would be offshore.

In the company’s full-year results, for the full-year to December 31 2009, published in May, Ascent said that Slovenia and Hungary will remain the core focus for 2010. During the results showed cash and cash equivalents of £4.63 million at the end of the period, compared with £1.24 million a year earlier.

Managing director Jeremy Eng had said: "2010 holds many opportunities for Ascent and could prove instrumental; we have an extensive work programme targeting a number of considerable prospects and funding in place”.

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