Ascent Resources plc, through its subsidiary PetroHungaria kft, has successfully tested and completed the PEN-101 well, in the Penészlek area of the Nyírség exploration permits in eastern Hungary.  Once the rig has departed the site, the PEN-105 well will commence production to sales. The completion of the PEN-101 well is, as planned, in a Miocene gas bearing formation within a structure defined on the 3-D seismic acquired in 2008. Initial production rates achieved during preliminary testing exceeded 1.0MMscfd, and productivity is expected to be improved in the coming days by the use of small scale acid stimulation, similar to that used with good results on the PEN-105 well.

The PEN-101 well is located at the site of the production facilities that will be used to produce both it and the PEN-105 gas discovery.  Production from PEN-105 is expected to commence during the week of 15 March 2010, following the departure of the rig and the granting of operating approval for the facilities from the Mining Authority. The rig will then move to the PEN-104 location to continue the testing of the PEN-104AA sidetrack and, subsequently will continue drilling the PEN-106 well. The PEN-106 well targets a structure that is similar to that proven by the PEN-105 well.
 
The Penészlek Project has been a successful investment for Ascent and following Leni Gas & Oil's ('LGO') relinquishment of its interest (announced by LGO on 5 March 2010), it has been distributed among the remaining project partners in proportion to their prior interest in the project, at no additional cost to them.
 
Following the reallocation of LGO's interest and the conversion of Geomega's interest in the PEN-101 and PEN-106 wells from a working to a carried interest, the partners' interests in the project are now:

 

Project Interest (%)

PEN-101 & PEN-106

Revenue Share (%)

Cost Share (%)

Ascent Resources Plc

48.776

51.654

53.381

DualEx

40.440

42.826

44.258

Swede Resources

2.157

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