Ascent Resources (AST)

Ascent Resources (AST)

INTRO

Alison with a hard hat on, with blue overalls, looking like a miner...

Spinning the globe. And flipping through her passport

I love this oil and gas game. Never know which corner of the globe I’m off to next.

Picks up flight ticket

I’m so excited

Voice mumbles. A’s face falls.

The Netherlands! Are you mad?

MAIN DESK PIECE

Where others boldly go, Ascent Resources prefer to stay closer to home

This AIM-listed oil and gas explorer has interests in Hungary, Italy, Slovenia, Switzerland and, yes, The Netherlands.

And having strengthened its balance sheet with a £17 million fundraising in March, the company is charging ahead with its development programmes.

Its primary objective is to advance the Petisovci/Locaszi/Ujfala tight gas project straddling the Hungarian-Slovenian border.

It’s acquired 3D seismic surveys that cover the entire area and towards the end of 2010 confirmed P50 gas in place estimates for the project were in excess of 400 billion cubic feet.

Much to the delight of investors, the company confirmed gas in all of the six Middle Miocene Badenian reservoirs of the project earlier this year, as well as a surprise find in the Lower Miocene Karpatian.

At the end of June it began drilling the Pg-10 well on the Petisovci project, as it eyes up production before year end.

Ascent envisages 10-15 more wells over a three- to four year period.

It also boasts two other core projects on the go; Hermrigen/Essertines/Linder in Switzerland and Frosinone/Stranolagalli in Italy.

The Swiss project is considered low-risk and to that end, Ascent sold its 90% interest to eCorp last year, while retaining a 45% back-in right on any success for three conventional appraisal prospects.

As part of the deal, eCorp is committed to drill the Hermrigen-2 appraisal well before October, although a site construction permit is still awaited.

As for the Italian project, Ascent is planning a new three-well drilling programme for 2011/2012.

Further seismic has been commissioned at the Frosinone exploration licence to identify drilling locations, which the company believes will be relatively low cost.

And of the subject of coffers, production has continued at the group’s 48.8% held Peneszlek project in Hungary where it is generating gross gas sales of around €300,000 per month.