Ascent Farms-Out Interest in Hungary's Peneszlek Exploration Project

Ascent has entered into an agreement whereby Hungarian Horizon Energy ("HHE") and JKX Oil & Gas will farm-in for a 66.67% interest in a 120 sq. km area of the western part of the Nyirseg Szatmar permits in the Peneszlek Exploration Project in Hungary. Under the terms of the agreement signed with Ascent's partners in the project, HHE and JKX will pay for the acquisition and processing of a 3D seismic survey over the farm-out area. The acquisition of this seismic commenced on Thursday, November 20, 2008.

The farm-out area, known as the Pan-handle, is to the south of HHE and JKX's Hajdúnanas-1 gas discovery (reported by JKX on August 11, 2008) and some 70 km north-west of PetroHungaria's (Ascent 45.23%) PEN-104 well, which commenced gas production in August 2008. The new 3D seismic survey, which will cover the whole farm-out area, is designed to delineate additional gas prospects and to identify suitable targets for drilling.

Ascent retains a 17.50% interest in the project and the other partners are HHE (33.33% and operator), JKX (33.33%), DualEx (12.50%), Geomega (2.67%) and Swede Resources (0.67%).

Ascent Managing Director Jeremy Eng said, "This is a positive step forward in the continued development of our Hungarian assets. The Nyirseg Szatmar project area is very similar in characteristics to our successful PEN-104 well development, currently producing 117,000 cu. m per day (4.1 MMscfd; 689 boepd), and where we have already shot some 90 sq. km. of 3D seismic. In both areas we expect that the seismic will point us towards new drilling opportunities and allow us to bring into production further profitable gas wells."