I have held Ascent Resources (LON:AST) for several years now and it’s currently trading around my break even price of 4p. The reason I bought Ascent was for its multibag potential with three chances of a company making discovery.

1) Gazatta – This proved to be carbonated water rather than the 100BCF we were hoping for.

2) Agnani – A shallow oil prospect has been drilled a few times but it would appear off structure. This will be drilled again hopefully within 6 months

3) Hemriggen – What should be an appraisal of an existing discovery with an extension into what was the primary objective in the original drill. This has been farmed out to eCorp who intend to drill ASAP. AST have back in rights under very good economic terms should this drill come up trumps. Hemriggen has the potential for 300 BCF recoverable.

Since my initial investment, Ascent have acquired acreage in Slovenia and Hungary called Lovászi and Peti?ovci which are known to contain deep but tight gas reservoirs. 3D seismic has been carried out and management believes this is 675 BCF recoverable in Slovenia alone. Ascent owns a minimum of 15% of this acreage rising to 75% in parts. However this situation is fluid and Ascent have suggested they will go on a sole risk basis as it seems some partners especially Stratic are either unwilling or unable to drill this acreage. Given this is tight gas there is no certainty that they can unlock the resource. If they can the payback will be huge. Fiscal terms and Gas prices in this part of the World are fantastic. The countries concerned rely of the supply of Gas from Russia, something politically they don’t want. The first well is due to spud Q3, although as I write it looks like Q4 is going to be more appropriate. My view is that success on the first well could put Ascent's shares into orbit.

Today, Ascent has acquired a 60% interest in the Igal-II exploration permit in Central Hungary. According to the Envoi note [1] , this acreage could contain over 1 TCF of recoverable gas. Some of the targets are over 100 BCF. The acreage is also thought to contain oil. Indeed, Ascent has stated that they will initially target Oil in 2011. 3D…

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