PetroHungaria Spuds PEN-104AA Sidetrack

Ascent Resources, through its 45.23% owned subsidiary PetroHungaria Kft ('PetroHungaria'), announced the commencement of a further sidetrack of the PEN-104 well ('PEN-104AA'), to test a substantial Miocene volcani-clastic (tuffaceous) prospect in the Penészlek field in the Nyírség permits of northeastern Hungary. The target for the sidetrack, identified on the 3D seismic that was acquired last year, will be drilled from the existing PEN-104A wellbore on essentially the same trajectory to a depth anticipated to be equivalent to a vertical depth of approximately 1,360 meters.

The rig that will used to drill the well is the same one that recently drilled and completed the nearby, successful, PEN-105 well. The Partners in PetroHungaria have decided that, due to the immediate availability of the drilling rig and associated services, along with the near complete depletion of the PEN-104A sand and the consequent increasing water production, that this is an ideal time to undertake these operations. PetroHungaria anticipates that, with the successful completion of drilling, production at the site will resume within a month.

PEN-104A is a sidetrack of the original Penészlek PEN-104 well and was drilled to recover gas from an undrained fault compartment in the Pannonian Sands identified on 3D seismic. The combined production from both PEN-104 and PEN-104A is approximately 1.0 Bcf, yielding a satisfactory recovery factor of over 70% of the originally estimated gas in place for these reservoirs.

Ascent Managing Director Jeremy Eng said, "This is an excellent opportunity to explore this highly promising prospect, which we believe has the potential to add significant reserves to the PEN-104 well. Immediate availability of the drilling equipment has presented an ideal opportunity to allow us to complete the drilling swiftly and minimise disruption to gas production at the site. We look forward to providing further updates as the work nears its completion."

In Italy's Latina Valley, site works are nearing completion to allow Ascent to commence drilling the Fontana 1 geological appraisal well. The drilling rig is now expected to mobilize to the location in the second week in October.