PetroHungaria Starts Drilling Sidetrack at Producing Peneszlek Well

Ascent, through its 45.23% owned subsidiary PetroHungaria kft ('PetroHungaria'), has started drilling PEN-104A, a sidetrack well to the gas producing PEN-104 well in the Peneszlek area of the Nyirseg permits of eastern Hungary.

The PEN-104 discovery well, originally drilled in 2006 by PetroHungaria, produced gas from August 2008 to February 2009 with cumulative production of 509 MMscf (14.41 million sm3). Following the acquisition of 3D seismic in the area and as a consequence of a compressor failure in the regional gas supply infrastructure, PetroHungaria decided to drill the 104A sidetrack to reach additional gas reserves in a higher part of the structure. The sidetrack is expected to take about three weeks to complete and can be brought on production immediately through the existing facilities.

As a further consequence of the 3D seismic results, plans are being made to drill PEN-105, an appraisal well of the PEN-12 gas discovery drilled in 1983, and PEN-102A, a sidetrack of the PEN-102 well drilled by PetroHungaria in 2006. Permitting for these wells and their associated pipelines is underway. The drilling of an appraisal of the PEN-9 gas discovery is also being assessed and the drilling of further wells in the area where the 3D seismic was acquired is under consideration.

Ascent holds a 45.23% interest in the Peneszlek Project through its equity interest in PetroHungaria. Other partners include DualEx (37.5%), Geomega (8%), Leni Gas & Oil (7.27%) and Swede Resources (2%).

Ascent Managing Director Jeremy Eng said, "The extent of the reserves that are present in the Peneszlek area are only now becoming apparent with the 3D seismic being instrumental in identifying the potential. Importantly, these estimates do not yet include any contribution from the rehabilitation of the old Peneszlek gasfield where the seismic clearly shows that the configuration is very different from previous interpretations. We can expect cashflow from these gas production projects to continue for some years yet."