Ascent Resources: Hungarian Production Online

Tuesday, Mar 23 2010 by
2

Ascent Resources Hungarian Production ><a href=Ascent Resources (LON:AST), the AIM traded oil and gas exploration and production company, has announced today, that through their subsidiary PetroHungaria kft, they have commenced production at the Penészlek-105 well in Hungary. The well is expected to produce 2 MMscfd and is regarded as a major milestone for the company who has a 51% revenue interest in the well. [1]

Ascent Resources Managing Director Jeremy Eng said,

"The initiation of production on PEN-105 not only provides cash flow but demonstrates the success of our strategy of targeting development projects where there is instant demand for our production. The short term set back of PEN-101 is not expected to cause significant delay and as soon as the drill rig is available we should be in a position to ready the well for production. With production online from Hungary, we now look towards further results from drilling in Italy and the analysis of 3-D seismic in Slovenia." [2]


PetroHungaria kft have also decided to abandon PEN-104, which is a disappointing outcome for Ascent investors and have now turned their focus on drilling PEN-106 which is targeting a structure that is similar to that proven by the PEN-105 well. [3]

Following the announcement Fox Davies have reiterated its buy recommendation on AST up to 20p, [4] which this follows a recent recommendation by Astaire in a note to its investors where it calculates Ascent’s total NAV at 14p per share [5]

Moving forward, Ascent now anticipate to be able to provide core results from the Fontana-1 drill in Italy’s Latina Valley and the eagerly anticipated 3-D seismic in Slovenia. Progress is also being made with regard to a joint venture in the appraisal of the Hermrigen Gas discovery in Switzerland which is currently under offer through their agent Envoi. [6]

Disclosure of Interest: The Author holds shares in Ascent Resources.

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Disclaimer:  

This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


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Ascent Resources plc is an independent oil and gas exploration and production (E&P) company. The Company's portfolio consists of European onshore projects. The Company operates through two segments: Slovenia and UK. The Slovenia segment is engaged in exploration and development work. The UK segment includes head office. It operates the Petisovci tight gas project in Slovenia. The Company's project is operated through a local entity in a joint venture. The Petisovci Tight Gas Project is located in an area covering approximately 100 square kilometers in north eastern Slovenia. The Petisovci Tight Gas Project targets the development of tight gas reservoirs, which include Miocene clastic sediments. The structure has over two sets of reservoirs, the shallower Upper Miocene and the deeper Middle Miocene. It is focused on the development of the Middle Miocene Badenian reservoirs. Its subsidiaries include Ascent Slovenia Limited, Ascent Resources doo and Ascent Resources Netherlands BV. more »

LSE Price
0.225p
Change
 
Mkt Cap (£m)
5.9
P/E (fwd)
2.0
Yield (fwd)
n/a



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