Envoi Limited, specialist A and D advisors to the international upstream oil and gas sector, has released information on a significant appraisal / development opportunity in the eastern Pannonian Basin (that straddles the Hungary-Slovenia border) involving the large previously discovered, but largely undeveloped Petisovsci-Lovaszi tight gas field.

Only 8 Bcf has been produced to date of the substantial 300+ Bcf untapped commercial reserve potential now estimated by Ascent, is capable of being unlocked by modern technology. This project opportunity is probably unmatched within this part of Europe, states Envoi.

Ascent Resources plc, the London AIM listed company, has commissioned Envoi to assist in identifying potential partners to participate in the two licences that incorporate the Petisovsci-Lovaszi field complex.

Ascent has recently acquired some 200km² of modern 3-D seismic data across the entire project area which is allowing the full and future potential of the field's reservoirs to be understood for the first time and the additional reserves potential expected in other undrilled leads within the Project area. The main Petisovsci-Lovaszi gas reservoir is the relatively tight Miocene turbidite sandstones encountered at depths between 2,000m and 3,000m and has a stacked play of over 400 metres.

Commenting on the opportunity, Jeremy Eng, Ascent Resources' CEO, said,'Even though some intervals within the reservoir sand packages have flowed gas without stimulation, the application of advanced drilling and stimulation techniques can be expected to reliably achieve good commercial flow rates, that coupled with the availability of local pipeline infrastructure, easy access to markets and high gas prices, even the 'most likely' 40 Bcf recoverable reserves that just the first appraisal well being planned is expected to unlock would not only be commercial, but would have an estimated NPV10 of €90 million (U.S. $120 million).

Ascent first acquired an interest in the Petisovsci Permits in the Slovenian part of the project area in 2007 and now holds a 75% interest. The Slovenian partner, Geoenergo, is the concessionaire and holds the remaining 25% interest. In the Hungarian part of the project, Ascent's partner is MOL and each party holds a 50% interest. The combined project area in Hungary and Slovenia covers a total of approximately 200 km².

An incoming party is being offered an equity interest in the entire field area in both Hungary and Slovenia, for a negotiated contribution to the 6 well appraisal / development drilling programme currently being planned including stimulation and testing which is expected to start before the end of 2010.

Tags: Ascent Resources plc