Ascent Brings Hungarian Gas Well Online

Production from the PEN-105 well has commenced and is expected to stabilize at over 2 MMscfd within a few days. The completion of the PEN-101 well has been temporarily suspended as the acid stimulation, while clearly demonstrating a substantial improvement in productivity, caused a suspected failure of the cement isolation allowing some water production from a deeper zone.

A short sidetrack is being considered and once the drilling of PEN-106 is complete, the drilling rig will return to the PEN-101 location to conduct the remedial work. The PEN-104 well is to be abandoned as, following the completion of further testing operations on the PEN-104AA sidetrack, very low gas productivity and high watercut make commercial production untenable.

Ascent Resources Managing Director Jeremy Eng said, "The initiation of production on PEN-105 not only provides cash flow but demonstrates the success of our strategy of targeting development projects where there is instant demand for our production. The short term set back of PEN-101 is not expected to cause significant delay and as soon as the drill rig is available we should be in a position to ready the well for production. With production online from Hungary, we now look towards further results from drilling in Italy and the analysis of 3-D seismic in Slovenia."