Oil and gas exploration and production company Ascent Resources PLC (AIM: AST) updated the market on its busy schedule as it proceeds with numerous projects across the five European countries it operates in and reported narrowing losses for the first half.
The company reduced its pretax loss to £685,000 in the six months to end-June 2009 from £3.24 million a year earlier. It posted revenue of £504,000, against nil in the previous first half.
Ascent currently holds interests in some 20 development, appraisal and exploration projects in Hungary, Italy, Slovenia, Switzerland and the Netherlands.
Drilling of the PEN-105 well in the Peneszlek area of the Nyirseg permits in Hungary was completed at the end of August having reached and logged its primary target. The preparations required for production testing and completion at the well are now in progress, and further updates are expected in the coming weeks. Together with its partners, Ascent expects to drill a further three development wells at Peneslek: PEN-104AA, PEN-101 and PEN-106. Additionally, it continues to carry out evaluations on a number of other potential locations in this highly prospective region.
Ascent is currently awaiting the commencement of production testing at the GH-1 well in the Panhandle region of the Nyirseg Permit in northeast Hungary. The work is expected to begin this month and the well will be completed as a future gas producer.
Later this month Ascent expects to commence drilling a geological appraisal well called Fontana-1 which targets the shallow part of the Anagni structure in the Frosinone exploration permit in Italy's Latina Valley. The civil works required to prepare the site for drilling are due to commence shortly. The Anagni-1 well, drilled in 2008, confirmed the presence of good reservoir characteristics and recovered small quantities of oil.
Permitting for the acquisition of 3D data over an area of 90 square kilometres at the previously producing Petisovci oilfield in Slovenia has been completed and the survey is currently underway. The existing infrastructure at the site makes the area ideal for rapid redevelopment and estimates of up to 300 billion cubic feet of tight gas reserves in addition to a number of shallow oil targets make Petisovci a potentially significant project for the company.
Permitting has advanced well to allow the company to conduct an acquisition of 3D data over 200 square kilometres from the Filovci development area in eastern Slovenia in the fourth quarter of 2009. Previous wells at the site have produced both oil and gas.
The company continues to assess a number of potential transactions through its previously announced asset management joint venture agreement with San Severina Holdings.