Ascent Resources says drilling is underway on PEN-106 in Hungary

Ascent Resources (AIM: AST) announces that drilling is currently underway on the PEN-106 well in the Penészlek area of the Nyírség exploration permits in eastern Hungary. Last month, the company began production from the nearby PEN-105 well, and once the PEN-106 drilling is completed the rig will return to PEN-101 to complete remedial work required to ready it for production.

The target for PEN-106 is the Miocene tuffaceous formation within a structure defined by 3-D seismic, acquired in 2008, and similar to that proven by the PEN-105 well. The well is planned for a total depth of approximately 1,500m and, if productive, it will be connected to the existing Penészlek facilities. A permit for the 2km pipeline has already been obtained.

Ascent Resources is undertaking the exploration and production work through its and production company, through its subsidiary PetroHungaria kft.  The Penészlek area is being developed through a partnership between four companies, of which Ascent is the largest stakeholder with 48.776%, DuelEx is the second largest with 40.44%, Geomega kft owns 8.627% and Swede Resources has 2.157%.

Astaire Securities commented that spudding of PEN-106 comes very much in line with the planned drilling schedule and it would expect to hear results from drilling and testing in around four weeks’ time.

Last week, Ascent reported on progress on its Petišovci gas project in Slovenia, saying it has has completed the 3-D seismic processing and the preliminary interpretation, and that the results have exceeded its expectations. The 3-D seismic data was acquired over some 120 square kilometres, extending the project area and mapping over 12 new drilling targets with a total estimated potential of over 75Bcf (billion cubic feet) of recoverable gas.

Ascent MD Jeremy Eng commented: “We now have a much better understanding of the configuration of the reservoirs within the project and have identified additional prospects outside the previously reported area of the original Petišovci field".

In the original Petišovci project area which covers 35.5 square kilometres, in partnership with Geoenergo, Stratic Energy and Kulczyk Oil Ventures, Ascent's wholly-owned unit NSC has a 45% interest in the shallow oil and gas reservoirs and a 15.75% interest in the deeper tight gas reservoirs.

With the 3-D seismic, the project area in Slovenia has been increased by 61.5 square kilometres.  NSC has a 75% interest in both the shallow and the deep reservoirs and is in partnership with Geoenergo only. Ascent noted that the majority of the new prospects have been identified in the extended area.

http://www.proactiveinvestors.co.uk/companies/news/15133/ascent-resources-says-drilling-is-underway-on-pen-106-in-hungary-15133.html