Ascent Resources Says Both Hungarian Projects Can Produce, Sell Gas

Ascent Resources PLC said both of its projects in Hungary have the capability to increase reserves as well as to produce and sell gas in the 'short-term'.

The Europe-focused gas and oil exploration company, together with its 90 pct-owned Hungarian joint venture, said the gasfield redevelopment project in south west Hungary, in association with Hungarian oil and gas company MOL, has received sanction from MOL's management.

It added that the Ministry of Economy and Transport has cut the royalty rate for gas produced from this project to 12.46 pct from 70 pct.

In the Nyirseg project in the north east, drilling of the first appraisal well, PEN-102, is expected to begin in May, immediately followed by the second well VAM-1.

Also in Nyirseg, Ascent said it plans to bring the PEN-104 gas discovery to market in 2007.