Ascent Resources has agreed terms with MOL, Hungary's leading oil and gas company, for joint operations in an area covering 88 square kilometers in southwestern Hungary, which includes both the Lovaszi and Ujfalu oil and gas fields.
Under the terms of the agreement, MOL will transfer to Ascent a 50% interest for joint exploration and production in 88 square kilometers of licenses in Hungary, but will retain an option to increase its interest to 60%. Ascent will acquire 3-D seismic data over this area and will fund the drilling of two wells. It will recover MOL's share of the cost of these wells from 80% of any resultant production revenues. Ascent will also acquire 3-D seismic data over an additional 90 square kilometers in the adjoining part of Slovenia that includes the Petisovci redevelopment project.
Ascent's Managing Director Jeremy Eng said, "Over the past two years, Ascent has completed extensive geological and production engineering studies in this region. Planning and permitting of the Slovenian 3-D seismic acquisition has been ongoing for sometime and we are very pleased to now have the opportunity to continue this work across the border into Hungary.
"As the area is highly prospective, especially for tight gas reserves, the primary objective of the 3-D seismic is to plan for the development of these gas reserves from the Badenian reservoirs, from which small amounts of production have been achieved in Slovenia. In addition, there are also a number of secondary targets in the shallower Pontian oil reservoirs that have already produced over 55 million barrels of oil from the Lovaszi and Petisovci fields."
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