First Gas Flows at Ascent's Slovenia Well

Ascent has flowed gas from an open-hole test of the Karpatian reservoir of the Pg-11A well and now continues drilling to the planned total depth of 3,500m. The Pg-11A well is positioned to become the first re-development well in the Petišovci Project in Slovenia where the Company has a 75% interest.

Following the re-commencement of operations on the Pg-11A in April 2011, the well was re-drilled to a depth of c. 3,000m where a 7" liner and tie-back string was successfully set and cemented immediately above the Karpatian reservoir. The top part of the sandstone reservoir was cored and the well deepened to expose approximately 50m of reservoir. An open hole test on this section produced and flared good quality hydrocarbon gas at a constrained rate of c. 2,500m3 per day (c. 90 Mscfd). On-site gas analysis indicated a better than expected carbon dioxide concentration of less than 1%. Gas samples and the core will now be analyzed and integrated with the extensive geological and engineering data already obtained from the well. While the preliminary results from the Karpatian reservoir are positive, the delineation of the full extent of the reservoir is the primary purpose for the extra 450m drilling to the planned total depth of 3,500m. Although the Karpatian may produce at commercial rates unstimulated, hydraulic fracturing maybe required or economically justified to optimize production rates.

With the high pressures and temperatures experienced in this well, drilling conditions were challenging and have led to some delays in the previous hole section.

Ascent's Managing Director, Jeremy Eng commented, "Operations are progressing steadily at our Petišovci Project in Slovenia and we are pleased that the first test on the Karpatian proved the presence of producible gas. The lower than expected carbon dioxide levels in the gas, if confirmed by laboratory analysis, will be advantageous as CO2 processing equipment may not be required in the early stages of the redevelopment."