Ascent Gets OK for License Extension Offshore Netherlands

- Ascent Gets OK for License Extension Offshore Netherlands

Tuesday, September 13, 2011
Ascent Resources plc

Ascent Resources has received confirmation of the extension of its M10/M11 block licenses ('the Project') located offshore Netherlands in the southern North Sea until June 30, 2013.

The M10/M11 appraisal project is in the shallow waters off the north coast of the Netherlands. In the license area there are three structures, all of which contain gas discovery wells with the gas present in the Slochteren unit of the Rotligendes sandstones. A conceptual development plan has been prepared and a final appraisal well is being planned for H2 2012 to confirm reservoir parameters for the detail project design. This well will be an appraisal well for the Terschelling Noord discovery, which is in a structure that lies partly within the M10/M11 license area and partly to the area to the south. The well would be expected to then become a production well for the development.

ARN holds a 54% interest in the Project. Other partners in the Project are Energie Beheer Nederland B.V with 40% and GTO Limited with 6%.

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Ascent IDs 400 Bcf of Gas-in-Place at Slovenia Well

- Ascent IDs 400 Bcf of Gas-in-Place at Slovenia Well

Tuesday, August 23, 2011
Ascent Resources plc

Ascent has successfully completed the drilling of the Pg-10 well at the Petišovci Project in Slovenia. The results confirm the reservoir quality and potential commerciality of the Middle Miocene reservoir section, which is independently estimated to contain over 400 Bcf of gas-in-place, and delineate the substantial new deeper reservoir section discovered by the Pg-11A well.

The Pg-10 well was drilled to a total depth of 3,545m. The appraisal of the deeper Miocene or 'K' sand reservoirs showed a total of approximately 123m of new net additional reservoir with 63m of good to moderate sand quality along with another 60m of poorer quality sands in a 370m gross reservoir section. Importantly, gas is present throughout the 'K' sand in PG-10 and with the total depth of the well 45m below Pg-11A, it increases the depth of the deepest known gas. The independent audit of the gas-in-place estimate of 412 Bcf attributable to the Project by RPS Energy ('RPS') will now be updated. Given the larger than expected thicker reservoir discovered by Pg-10, Ascent remains confident that the RPS P50 gas in place estimate will increase significantly.

Both Pg-10 and Pg-11A are now being completed in preparation for fracture stimulation. Mobilization of fracturing equipment is planned for September 2011. Following the appointment of global oil services company Halliburton as the contractor for fracturing and ancillary services, final treatment design is underway. This fracture stimulation program is being funded from existing cash resources.

Ascent's Managing Director, Jeremy Eng commented, "The results from Pg-10 are highly encouraging and have defined substantial additional gas resources in the deeper Miocene 'K' sands. Our efforts are now focused on the fracture stimulation of Pg-10 and Pg-11A, which we believe will unlock the significant intrinsic value of the project."

Ascent through its wholly owned subsidiary Ascent Slovenia Limited, has a 75% interest in the Petišovci Project. Ascent's partner is Geoenergo with a 25% interest. Geoenergo d.o.o. is the holder of the Petišovci Exploitation Concession and is a company jointly owned by Nafta Lendeva, the Slovenian State Oil Company and Petrol, the leading energy conglomerate in Slovenia.

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Ascent Spuds Slovenia Well

- Ascent Spuds Slovenia Well

Thursday, June 23, 2011
Ascent Resources plc

Ascent has commenced drilling the Pg-10 well which is the second redevelopment well of the Petišovci Project in Slovenia. The primary objective of the well is to confirm the reservoir quality and commerciality of the Middle Miocene reservoir section, independently assessed by RPS Energy ('RPS') to contain over 400 Bcf of gas-in-place, and secondarily to further delineate the substantial new deeper reservoir which was recently discovered by the Pg-11 well.

Early estimates suggest that the newly discovered reservoirs could increase the RPS P50 gas estimate by over 50%. Significantly the deeper Miocene pay section in Pg-11A has better reservoir characteristics than the thinner sands, which produced a total of 8 Bcf of gas from the Pg-1 and Pg-5 wells at initial rates of 1.5 and 2.5 MMcfd in 1987. These rates were achieved after fracture stimulation of the vertical wells using, what are now considered to be, outdated techniques.

With the increase in the gas resources of the field and their high pressure and temperature, a stimulation program involving state-of-the-art fracturing treatments to optimize the gas recovery from the redevelopment is being implemented. Full details of the forward program will be announced when fracture stimulation design, which will incorporate the extensive log and core data obtained from the Pg-11 and 11A wells, is complete within the next few weeks.

Ascent's Managing Director commented, "This intensive work program is expected to lead to the successful re-development of significantly bigger reserves than initially predicted and from a field that is now becoming one of the largest under-exploited onshore European gas fields."

Ascent through its wholly owned subsidiary Ascent Slovenia Limited, has a 75% interest in the Petišovci Project. Ascent's partner is Geoenergo with a 25% interest. Geoenergo d.o.o. is the holder of the Petišovci Exploitation Concession and is a company jointly owned by Nafta Lendeva, the Slovenian State Oil Company and Petrol, the leading energy conglomerate in Slovenia.

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Ascent Concludes Drilling Ops at Slovenia Well

- Ascent Concludes Drilling Ops at Slovenia Well

Monday, June 13, 2011
Ascent Resources plc

Ascent has successfully completed the drilling of the Pg-11A well in the Petišovci Project in Slovenia. Initial results are encouraging and have confirmed the presence of good quality gas and well logs indicated the discovery of approximately 114m of new net additional reservoir in the deeper Miocene. The drilling rig is now moving to drill the second redevelopment well, Pg-10. Meanwhile, a workover rig will now be mobilized for a completion testing program on Pg-11A, designed to optimize the production completions for Pg-11A, Pg-10 and other future redevelopment wells.

• Petišovci Project appraisal drilling proceeding according to plan;
• Good initial results from the Pg-11 and Pg-11A drilling with a substantial increase in gas-in-place for the project following the discovery of 114m new net pay in deeper Miocene reservoirs;
• Short term work program objectives are to drill Pg-10 as a second development well and for the delineation of the lateral extent of the new gas bearing reservoirs; to determine the optimum completion methodology and to commence production;
• Medium term objectives are to define recoverable reserves of the project and to commence the implementation of the field re-development.

The Petišovci Project in eastern Slovenia targets the redevelopment of the major Middle Miocene Badenian tight gas reserves, which were partially produced in the 1980's. The project has a core area in which RPS Energy Limited, an independent reserves auditor, has ascribed a P50 gas-in-place estimated of more than 400 Bcf (c. 12 Bm3; 69 MMboe). Their estimate excludes additional gas volumes which were encountered in Pg-11A within deeper reservoirs, and exclude any upside volumes associated with a number of undrilled exploration prospects within the concession. Once data from the Pg-10 well is available an updated gas-in-place assessment will be commissioned.

The Pg-11 and Pg-11A wells successfully confirmed the main technical parameters for the Middle Miocene Badenian tight gas reservoirs and also discovered the deeper gas reservoirs, which will substantially increase gas-in-place estimates for the project. The Pg-11A well logs indicated approximately 114m of net reservoir in the new section drilled between 3,000m and 3,500m, on which analysis continues to confirm the exact geological age. The top part of these reservoirs was tested openhole and flowed good quality gas. Further tests in this section are planned using a more representative cased hole procedure following the installation of the completion by the workover rig. These results will help determine the configuration of the initial production completions for both the Pg-11A and Pg-10 wells and whether conventional completions or simple, low cost fracture stimulations of the vertical wellbores are best suited to optimize any commercial production. The Company currently has sufficient financial resources available to put these wells into production under either scenario. The use of horizontal side-tracks are not considered to be cost effective at this time.

Ascent's Managing Director Jeremy Eng commented, "This project continues to provide very good results for the Company, starting from the 3-D seismic acquired back in 2009 through to the drilling results of Pg-11 and 11A. We have confirmed the presence of gas in all the previously known Badenian reservoirs and proven the newly discovered deeper reservoirs to be productive for gas. The Badenian reservoirs, the original focus of the field redevelopment plan, already provided the Company with a substantial project. However, if the Pg-10 well, which is close to the area of the original field development in the Badenian, also confirms the presence of gas in the deeper reservoirs in the western part of the field, the additional upside in gas volumes should be very significant indeed."

Ascent, through its wholly owned subsidiary Ascent Slovenia Limited, has a 75% interest in the Petišovci Project. Ascent's partner is Geoenergo with a 25% interest in the Project. Geoenergo d.o.o. is the holder of the Petišovci Exploitation Concession and is a company jointly owned by Nafta Lendeva, the Slovenia State Oil Company and Petrol, the leading energy conglomerate in Slovenia.

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Ascent Reports 2010 Results

- Ascent Reports 2010 Results

Thursday, June 02, 2011
Ascent Resources plc

Ascent announced its final results for the year ended December 31, 2010.

Overview

• Progressed and refined portfolio of low cost, onshore oil and gas assets with near-term upside potential across Europe - Hungary, Slovenia, Switzerland, Italy, and the Netherlands
• Advanced the Petišovci/Lovászi/Ujfalu tight gas project in Slovenia/Hungary towards production - P50 gas in place estimates of 412 Bcf. (11.7 Bm3; 68.7 MMboe)
• Confirmed gas in all of the six Middle Miocene Badenian reservoirs and flow tested gas from the Lower Miocene Karpatian reservoir at Petišovci project - potential to increase gas in place estimate by in excess of 100 Bcf, with preliminary results of Pg-11A expected to be released shortly
• Established active development program at Frosinone/Strangolagalli project in Italy
• Sold 90% interest in Hermrigen/Essertines/Linden project in Switzerland to eCORP Europe International Ltd. for €8 million cash - retained various back-in options on specific potentially successful discoveries
• Strengthened balance sheet post year end with a £17 million placing to institutional investors at 5 pence per share
• Continued production at 48.8% held Penészlek project in Hungary, currently generating gross gas sales of approximately €300,000 per month
• Made changes on a corporate level including appointment of new Nominated Adviser and Broker and strengthened Board

CHAIRMAN'S STATEMENT

I am pleased to report that 2010 was a year of solid progress for Ascent both operationally and in terms of positioning the Company for steady near- and long-term growth in shareholder value.

Our strategy remains to combine lower risk field redevelopment projects in areas with existing infrastructure with selected higher risk exploration projects all designed to provide a balanced risk/reward profile with good potential upside. To this end, we have a diversified portfolio of principally onshore, hydrocarbon exploration, redevelopment and appraisal interests across five European countries: Hungary, Slovenia, Switzerland, Italy, and the Netherlands. We are initiating relatively simple development models to advance these projects, utilizing the latest technology and working with local organizations in each jurisdiction to increase efficiency. As a result of the work undertaken during 2010 and 2011, we anticipate ramping up production towards the end of 2011 and beyond.

Our primary near-term objective is to advance the Petišovci/Lovászi/Ujfalu tight gas project in Slovenia/Hungary. We now hold a 75% interest in the Petišovci asset, having acquired a further 48.75% from EnQuest PLC post year end in return for a 22.5% equity stake in Ascent and a nil cost option of 150,903,958 additional shares, and a 50% interest in the Lovászi and Ujfalu assets. During the year we had independently verified P50 gas in place estimates for the entire project of 412 Bcf. (11.7 Bm3; 68.7 MMboe) and for that reason we consider it relatively low-risk. The challenge for us in 2011 is not so much finding the gas, which we know is there, but how to unlock this gas in a commercial manner given it is largely a tight gas asset.

Phase 1 of the project's development program included the drilling of Pg-11 well in December 2010 to define the main project parameters. On completion of drilling in February 2011, we were able to confirm gas in all of the six Middle Miocene Badenian reservoirs as well as, most excitingly and unexpectedly, the Lower Miocene Karpatian reservoir, which we hope will increase the gas in place estimate by in excess of 100 Bcf. The data collected, in conjunction with the full 3-D seismic which we acquired during the year across the whole project area, has led us to believe that we can extract the gas using modern drilling techniques, either by drilling horizontally or by fracking. In order to determine the right method to use, Phase 2 of the program is currently underway with a deeper horizontal sidetrack to enable us to fully delineate the Lower Miocene Karpatian reservoir and depending on these results we may follow this up with a sidetrack well in the Middle Miocene. Subsequently, in the late summer of 2011, we plan to drill another well, Pg-10. Following this, if successful, it is hoped that production can commence before the end of the year. To achieve this target, a simple pipeline connection and a carbon dioxide ('CO2') reduction plant is required to connect any producing wells in the project to the national pipeline network.

Going forward, our development plan envisages 10-15 more wells being drilled over a three- to four-year period. It is estimated that if production from the wells is in line with current projections, that net operating cash flow from the first well brought on stream during 2011 could be €3 million in 2011 rising to €10 million in 2012 and €24 million for the period 2013-2015, based on €7 Mscf. gas pricing. The project's net CapEx however is not inconsiderable requiring in excess of €150m to develop the entire field.

We are also focused on two other core projects: Hermrigen/Essertines/Linden in Switzerland and Frosinone/Strangolagalli in Italy. The Swiss project is another known oil and gas discovery, which was unexploited due to the low price of gas in 1982 and lack of pipeline infrastructure at that time. We consider that this is also a low risk project as Ascent sold its 90% interest to eCORP European International Ltd ('eCORP') in April 2010 for €8 million, while retaining a 45% back-in right on any success for three conventional appraisal prospects and a 22.5% back-in right for a further three secondary conventional prospects for apportioned cost. eCORP anticipates drilling the Hermrigen well early in the summer of 2011 once the permit is received.

Finally, the Frosinone/Strangolagalli oil exploration and redevelopment project in Italy has also been making headway. New seismic was shot last year in the Strangolagalli Concession and this year a latest generation satellite reconnaissance survey was commissioned, enabling us to plan a new three-well drilling program for 2011/2012. Further seismic has been commissioned at the Frosinone Exploration License to identify drilling locations. We are currently exploring our options in terms of financing an exploration program but as all the drilling would be targeting reservoirs about 1,000 meters deep, costs should be relatively low, yet the upside could be significant for a Company of our size.

Also on the theme of finance, production continues at our 48.8% held Penészlek project in Hungary, where we are currently generating gross gas sales of approximately €300,000 per month. The strong European gas market conditions have been working in our favor; with over 50% of European gas imported and forecast to rise to circa 75% in line with the declining North Sea production, we anticipate these favorable pricing conditions to continue. Production at Penészlek is expected to continue for about another 12 months with another sidetrack well, PEN-105, targeted for the summer of 2011 prior to the field being fully depleted.

The self-financing Penészlek project is useful as it provides the Company with cashflow for overheads, however post the year end in March 2011, it was necessary to raise additional funds by way of a placing in order to progress our core Petišovci/Lovászi/Ujfalu project. We were therefore very pleased to raise £17 million, before expenses, primarily with high quality institutional investors. This has provided the capital to significantly advance our Petišovci/Lovászi/Ujfalu project and we believe that if successful the money could be enough to get us to production/cash flow generation before the year end.

On a corporate level, we have made a number of changes. In September 2010 we appointed finnCap Ltd as the Company's Nominated Adviser and Broker to strengthen our profile within the fund and wealth management arena. Earlier in the same month we also made changes to our Board with the appointment of Dr. Cameron Davies as a Non-executive Director. Cameron is an international energy sector specialist and the former Chief Executive of Alkane Energy plc. He has an excellent track record of exploration success and growing profits in a quoted energy company. He brings with him the technical skills and broad network of international energy industry contacts which will be invaluable in progressing Ascent's extensive portfolio of European oil and gas development and exploration assets.

At the same time, both Legal Director Malcolm Groom and Non-executive Director Jonathan Legg, who had been with the Company since 2005, stepped down from the Board to focus on other commitments. At the end of 2010, Simon Cunningham, our Finance Director, also stepped down from the Board to re-locate to Australia. I would like to take this opportunity to thank them all for their work during their long association with Ascent.

Simon was replaced by Scott Richardson Brown as Executive Finance Director, who had been appointed in November 2010 as a Non-executive Director. Scott is a qualified Chartered Accountant and subsequent to his experience as an auditor, he spent over 10 years working with AIM, FTSE 250 and FTSE 100 companies, both in a corporate finance advisory role and, recently, as Corporate Finance and Investor Relations Director of CSR.

Additionally, post the year end, as part of the agreement with EnQuest PLC, Graham Cooper was nominated to join our Board as a Non-executive Director in February 2011. Graham brings with him a wealth of experience which will be very valuable to the Company. EnQuest will also provide technical support to Ascent for the Petišovci Project, as well as for the evaluation of future European business development opportunities.

With a strong team in place as well as a solid investor base, a healthy balance sheet and an exciting portfolio of diversified assets, the outlook for 2011 and beyond is highly encouraging. Having proved up our core portfolio we are now focused on extracting value from it and in line with this, aggressive work programs are underway. The Petišovci/Lovászi/Ujfalu tight gas project is particularly promising, which in tandem with our other projects, will, I am confident, create real and lasting value for our shareholders.

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First Gas Flows at Ascent's Slovenia Well

- First Gas Flows at Ascent's Slovenia Well

Tuesday, May 24, 2011
Ascent Resources plc

Ascent has flowed gas from an open-hole test of the Karpatian reservoir of the Pg-11A well and now continues drilling to the planned total depth of 3,500m. The Pg-11A well is positioned to become the first re-development well in the Petišovci Project in Slovenia where the Company has a 75% interest.

Following the re-commencement of operations on the Pg-11A in April 2011, the well was re-drilled to a depth of c. 3,000m where a 7" liner and tie-back string was successfully set and cemented immediately above the Karpatian reservoir. The top part of the sandstone reservoir was cored and the well deepened to expose approximately 50m of reservoir. An open hole test on this section produced and flared good quality hydrocarbon gas at a constrained rate of c. 2,500m3 per day (c. 90 Mscfd). On-site gas analysis indicated a better than expected carbon dioxide concentration of less than 1%. Gas samples and the core will now be analyzed and integrated with the extensive geological and engineering data already obtained from the well. While the preliminary results from the Karpatian reservoir are positive, the delineation of the full extent of the reservoir is the primary purpose for the extra 450m drilling to the planned total depth of 3,500m. Although the Karpatian may produce at commercial rates unstimulated, hydraulic fracturing maybe required or economically justified to optimize production rates.

With the high pressures and temperatures experienced in this well, drilling conditions were challenging and have led to some delays in the previous hole section.

Ascent's Managing Director, Jeremy Eng commented, "Operations are progressing steadily at our Petišovci Project in Slovenia and we are pleased that the first test on the Karpatian proved the presence of producible gas. The lower than expected carbon dioxide levels in the gas, if confirmed by laboratory analysis, will be advantageous as CO2 processing equipment may not be required in the early stages of the redevelopment."

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