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Ascent Resources starts drilling PEN-101 well in Hungary

09 February 2010

Oil and gas group Ascent Resources has got underway with drilling the PEN-101 well, which lies on the Penészlek Project in the Penészlek area of the Nyírség exploration permits in eastern Hungary.

The target of the well is a Miocene gas formation within a structure defined on 3D seismic of the area acquired in 2008. The well is planned for a total depth of approximately 1,500 metres and is expected to take about a month to drill and test.

The well is located at the site of the production facilities that will be used to produce gas from another well, PEN-105. The pipeline that connects PEN-105 to this facility and to the export pipeline is now complete and awaiting pressure testing.

The close proximity of the production facilities to the PEN-101 drilling rig means that, for safety reasons, PEN-105 production will not commence until PEN-101 drilling operations are finished. PEN-101, if successfully completed, can be immediately connected via the same facility to the export pipeline.

After the rig has completed the PEN-101 well, it will proceed to either drill the PEN-106 well, another Miocene prospect, or to the PEN-104 location to continue the testing of the PEN-104AA sidetrack that was suspended in December 2009.

Ascent's managing director, Jeremy Eng, said: “Production in March from the Penészlek Project will again be contributing revenues to Ascent, the PEN-101 is a relatively simple and shallow well, neither deviated nor with a multiple completion and targets a previously undrilled Miocene prospect that is very similar to the 105 proven reservoir and 106 target. As soon as the well is complete and the rig has departed production will recommence.”






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