Ascent Resources Makes Gas Discovery in Hungary

Ascent Resources has made its first gas discovery following the drilling and testing of the PEN-104 well in Peneszlek gasfield in Hungary. The gas flowed from a previously untested reservoir horizon and validates the Company's geological model and seismic interpretation of the area. This in turn increases the Company's confidence in the target horizons for the next wells to be drilled in the Nyirseg exploration permits.

The Company's 90% owned subsidiary PetroHungaria kft, with partners DualEx of Canada (37.5%) and Petro Pequnia of Sweden (2%), drilled and tested two intervals in the PEN-104 well. The first interval did not flow, with some water and gas in the tubing, but the second test produced gas at a restricted rate of 96,000 cu.m/day (3.4 MMscfd; 600 boepd). The gas rate was restricted because the very high permeability of the formation caused a high flowing pressure (91 barg), which reached the maximum pressure rating of the separator. The drawdown at this rate through an 8mm choke was 3 barg and the Mining Regulations preclude by-passing the separator under these conditions.

Ascent's Managing Director Jeremy Eng said: "This is the first well drilled in this area for over 20 years and it is encouraging that the well has made a new gas discovery. The test proves our geological model and underlines the large potential of the region. Together with our partners, we have already chosen four other drilling locations. The choice of these locations is based on modern seismic techniques and we feel that the methodology has been significantly de-risked with the positive results of the PEN-104 well."

The PEN-104 is situated on exploration permits that cover an area of 2,483 sq km in Eastern Hungary adjacent to the Romanian border. It is a re-appraisal well within the once productive Peneszlek gasfield and targets gas reservoirs in the Pannonian Clastics and the underlying Miocene Tuffs. Once the PEN-104 well has been suspended for future production, the rig will be moved to the northern part of the permits to drill the Fehergyarmat 2 (FGY-2) well, which is scheduled to commence next week.