Ascent Farm-In Agreement Takes Off, Hungary Exploration Begins

Ascent Resources has entered into a farm-in agreement with Toreador Resources to drill two exploratory wells and acquire 170 square kilometres of 3-D seismic in Toreador’s Szolnok exploration permit in Central Hungary.

The Szolnok exploration permit is one of the largest in Hungary spanning 2,620 square kilometres. The permit is located at the northern end of the Mako trough which has sourced numerous large gas fields which are currently producing in the surrounding area. Many exploration and appraisal opportunities have already been identified in the Szolnok block in both the shallow Pannonian and deeper Miocene formations. The seismic acquisition and the drilling of the two farm-in wells are planned for the first half of 2008.

Ascent will be appointed joint technical operator of the Szolnok Project and has agreed to pay 36.67% of the cost of a two well drilling and seismic acquisition programme, which is estimated to cost a total of €6.5 million (dry hole case), to earn a 27.5% interest in the project. Toreador will retain a 25% working interest.

Ascent Managing Director Jeremy Eng said, "We see this agreement with Toreador as a great opportunity to benefit from our expertise in Hungary and to increase the value of our portfolio. Alongside the Bajsca field redevelopment in the south west and the Peneszlek development in the eastern Nyirseg region, the Toreador farm-in provides the platform for a third producing area to be established and with success, could open up yet another cash-flow stream for Ascent in 2009."