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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:16 | IP Logged
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Web Site : http://www.ascentresources.co.uk
Email : info@ascentresources.co.uk
EPIC : AST
Feb 2006 Research Report : http://www.ascentresources.co.uk/WH_Ireland_Research_Note_16 _02_06.pdf
Oil and Gas Exploration Projects
Gabon, West Africa (1.75% stakes)
Two net profits interests in offshore shallow water oil exploration
Italy, Po Valley(100% stake)
Gas exploration permits in gas-rich area
Italy, Latina Valley (70% & 50% stakes)
Farm-in agreements to two oil explorations in Pentex Italia's Latina Valley Acreage
Hungary (90% stake)
JV with Hungarian operator GeoMega, which has four initiatives including a gas exploration project with two existing concessions with a proven gasfield
Switzerland (90% stake)
JV with SEAG, exploring one oil and two gas projects in the Molasse Basin
Holland (90% stake
JV with GTO, a gas exploration project in the Dutch sector of the North Sea
Spain (88.75% stake)
Oil and Gas
Major Shareholders :
RAB------------------------13.02%
Directors & Insiders-------11.44%
Tiger Resource Finance-----11.36%
AXA S A--------------------10.14%
Ronald Bruce Rowan----------9.76%
Framlington Investments-----8.58%
David Steinepreis-----------8.38%
Marlborough Fund Managers---6.94%
Fidelity--------------------4.69%
Hardman Resources-----------4.68%
Majedie Investments---------4.02%
Meridian Capital MGT--------2.74%
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:17 | IP Logged
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A good summary post by novicedave at AFN :
novicedave - 5 Apr'06 - 07:55
Firstly may I suggest that everybody interested visits the website http://www.ascentresources.co.uk/
As far as brokers are concerned, WH Ireland have a short term share price of 20p, although they find a risk-discounted asset valuation comes to 75p (a realistic LONG term target in my opinion, even allowing for 5 out of 6 wells being failures). The full note is accessible via http://www.ascentresources.co.uk/news/research.php
We currently have £3.3m cash in the bank and £600k worth of drilling inventory in Italy. Given that administrative costs are covered by production this is plenty for the planned work program for 2006/7, I would expect no more funds to be raised until at least one successful discovery, and a consequently higher share price. Of course this could change if they find another attractive project, which is still a principal aim of the company.
WH Ireland are impressed with the management’s range of skills and note that over 65% of the shares are held by just the 7 largest shareholders, so any good news could make them very scarce (and consequently very pricey).
At the current market capitalisation of c.£24m I believe this is a great opportunity, but make your own minds up and remember that all shares with potentially high-rewards carry with them high risks of failure. In my opinion the ratio between risk and award here is not correctly priced in, i think that this is a very good long term opportunity.
Success in any one of the projects could easily justify, if not multiply, the current market capitalisation, and with a large range of projects such as this I think more than one success is very likely. The unappraised discoveries from times of a lower oil/gas price (of which there are many in our portfolio) seem to me like a shrewd purchase, the difficulties getting the oil and gas out which led to these wells not being developed earlier can be approached both with new technology and higher economic costs; the margins might not be huge if these are brought into production but the geological risks are very low, they seem like ideal places from which to start a reasonably sized oil and gas company.
In addition to these there are several higher-risk, higher-reward areas (for instance the Swiss licence) which could POTENTIALLY take the share price to huge figures. For me these are the icing on the cake, very unlikely to come off but potentially life changing with even a modest investmeent. The management seem sensible but ambitious, and are certainly able, and the institutional support should ensure that any fund raising in future will go through at reasonable levels.
It’s a good risk/reward play for the long term, I intend to hold for 2-3 years (subject to change on news of course).
On to the projects, in a rough order of development (most developed first):
Producing:
88.75% of the Ayoluengo oil field in Northern Spain. The reserves here were acquired at an average $6/bl, and 115bpd is the current production rate. Engineering studies are underway with a view to an investment program to increase this production, which at the moment is sufficient to cover administrative overheads (but not exploration costs).
Probably - Possibly to be drilled this year:
In Italy’s Latina Valley we have varying stakes in the Fiume Arrone oil exploration permit (40%) which contains two wells drilled in 1955, one of which had gas shows, and on which a 950m deep target has been identified and scheduled for drilling. A seismic survey will also be shot this year over the Frosinone permit (70%) and the Strangolagalli permit (50%, excluding the producing Ripi oilfield). A well is scheduled to be drilled on one of these permits this year as well.
In Spain we have 50% of each of the La Lora concession (which contains Ayoluengo), the Huermeces, Valderredible and Basconcillos-H permits (total area 556 sq km). “The first priority is an appraisal programme with the drilling of two wells to appraise the Hontomin 2 discovery well drilled by Chevron in 1968, which produced oil during testing and the Tozo 1 discovery, drilled by Chevron in 1965, which flowed several hundred barrels over a five-month period. The Tozo 1 well also contained an un-tested gas sand.”.
In Hungary we have 90% of a joint venture doing exiting things. There are two exploration permits which have had 2D seismic data acquired late last year (on time and under budget), on which 4 well locations are being planned, and the permits are ‘about’ to be applied for. In addition this JV has signed an agreement with MOL (Hungarian Oil and Gas company) to develop large tight (low permeability) gas reservoirs throughout Hungary. A three well program has been submitted to them for approval, and may be drilled this year.
In Gabon, after what looks to me like some shrewd investment (receiving back costs and 404,350 Afren shares), we have a 1.75% net profits royalty in two Production Sharing Contracts (the Iris Marin and Themis Marin, both operated by Sterling Energy who have 3D seismic over the areas and are looking to drill soon)
In Italy’s Po Valley we have purchased a company (Vintage) with two gas exploration permits in a gas-rich, proven, valley. Following seismic reprocessing which yielded encouraging results, the environmental permits for 2 wells have been submitted, and Ascent are in the process of applying for two more. These wells will be drilled in 2007.
Longer term potential:
In Switzerland we have 90% of the JV which owns two exploration permits, (total 693.5 sq km) which contain three unappraised discoveries (from 1962/72/82) as well as unexplored Triassic potential (which is producing in neighbouring South Eastern France). The work program is currently concentrated on reprocessing seismic and geological studies. If anybody believes EK this area has ‘from a man in the know’ got the potential for a multi-TCF reservoir. We should know the potential (if they announce potential without substantiation, as seems to be the vogue with exploration companies) later this year, before a well is drilled in 2007.
In Holland we have 90% of a JV looking for both onshore and offshore gas exploration. The aim is (with the very experienced partners GTO) to target both unappraised gas discoveries and new exploration land. Applications have been made for permits in the Netherlands, the results for which are due to be announced ‘imminently’
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:17 | IP Logged
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RNS Number:0812B Ascent Resources PLC 05 April 2006
Ascent Resources plc
Holding in Company
The Company was notified today that, as of 23 March 2006, Majedie Investments plc purchased 1,000,000 ordinary shares in the company and is interested in 10,315,789 ordinary shares in the Company, representing 4.02 per cent. of the issued share capital of the Company.
_________________________
RNS Number:0542B Ascent Resources PLC 05 April 2006
Ascent Resources plc
Holding in Company
The Company was notified yesterday that, as of 29 March 2006, Marlborough Fund Managers Limited managed funds that were interested in 6.94 per cent. of the issued share capital of the Company.
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:18 | IP Logged
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This one came on to my watchlist went Simon Cawkwell first went long and mentioned the possible Swiss multi-TCF potential. After seeing MFM coming in with yesterdays RNS I decided to increase my holding to a reasonable amount and go much longer with this one
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:44 | IP Logged
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Ascent Resources PLC
06 April 2006
Ascent Resources plc ('Ascent' or 'the Company')
Acquires Romanian Gas Interests
Ascent Resources plc, the AIM quoted oil and gas exploration and production
company, is acquiring Millennium International Resource Company ('MIRC'), a
British Virgin Island registered company, in a cash and shares deal. MIRC holds a 5% interest in Brodina, Cuejdiu and Bacau exploration blocks, covering 3,800 km(2) of the Carpathian Thrust Belt in the north eastern part of Romania, which is one of the country's main oil and gas producing areas.
On the Brodina block, in the Bilca Development Area, three gas discoveries have
been drilled in the last two years and first gas production is currently
expected at the end of July 2006. Additionally, an active exploration programme
is underway in all three blocks, including new seismic work, and it is
anticipated that four exploration wells will be drilled at the end of 2006.
The operator for the three blocks is UK based Aurelian Oil & Gas Limited, which
holds a 28.75% interest in Brodina and Cuejdiu and a 47.5% interest in Bacau.
AIM listed Europa Oil and Gas Plc holds 28.75% in the Brodina and Cuejdiu blocks and 47.5% in Bacau, while the Romanian state gas company, Romgaz SA, holds a 37.5% stake in the Brodina and Cuejdiu blocks.
Ascent Managing Director Jeremy Eng said: 'This acquisition gives us an entry
into a country that has excellent oil and gas potential. Within a few months it
will provide us with gas revenue additional to the cash flow being received from the Ayoluengo oil field in Spain.'
In addition to the consideration of cash and 678,906 New Ordinary Shares, Ascent will pay a 1% net revenue interest on the Bilca Development Area. Application has been made for the admission of the New Ordinary Shares to trading on the AIM market and dealings in the New Ordinary Shares are expected to commence on 10 April 2006.
The Company will issue an operations update of at the end of April, which will include reports on its activities in Spain, Italy, Hungary and Switzerland.
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 06-Apr-06 at 08:57 | IP Logged
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Some more info on this news :
novicedave - 6 Apr'06 - 08:55 - 17 of 17
A bit more information for you all:
Likely total flow rates are c. 19.1mmscf/d (3180boepd), of which our share is 5% (minus a 1% net revenue interest). I'll try and find something regarding operating costs and so likely profit margins later this morning.
Bilca Gas Discovery, Brodina, northern Romania (5%)
The Bilca well flowed 99.4% methane gas at sustained rates up to 6.4 mmscf/d (1060 boepd). The Bilca-2 well located on the western extension of Bilca spudded in January 2005 and was completed as a gas producer. The well is currently suspended but will be completed as a production well. The Bilca-1 reservoir sand was encountered in Bilca-2 at a depth of 598 metres and had similar electric log responses to Bilca-1.
The Fratauti exploration well located approximately 7 km south of the Bilca Field was spudded in March 2005. The location of the well was chosen to target three seismic anomalies, all of which contained gas-bearing sandstones. The Fratauti-1 discovery well flowed at an aggregate of 12.7 mmscf/d (2120 boepd) Bilca-1 and -2 and Fratauti-1 wells are currently suspended but will be put on commercial production in July 2006.
EIII-1 Brodina Block - Exploration (5%)
The success of the Bilca discovery led to a seismic acquisition programme being undertaken in August 2004 to investigate the existence of further anomalies on the Block. The results have been very encouraging indicating more anomalies in the Block, one of which is a potential prospect for drilling in the first half of 2005.
In addition, a large sub-thrust structural lead in the central part of the Block, termed Voitinel, will be the target of a seismic survey to be undertaken in 2005 by the group.
EIII-3 Cuejdui Block (5%)
The EIII-3 Cuejdui Block lies on the Carpathian oil and gas trend, though is relatively underexplored. The initial work programme of collating and reprocessing existing data is complete and a number of leads have been identified. A further 50 km of seismic was acquired in July 2004 and is currently being processed. The data quality of the seismic is good and there is good potential for future drilling prospects to be identified on the Block.
EIII-4 Bacau Block (5%)
The EIII-4 Bacau Block also lies on the Carpathian oil and gas trend. 50 km of seismic has recently been acquired and is currently being processed, however the Block is at an early stage of exploration. Although the Block is underexplored it lies south of the giant Roman Gasfield complex and east of the Moinesti Oilfields and offers good exploration potential.
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 07-Apr-06 at 01:59 | IP Logged
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RNS Number:1714B Ascent Resources PLC 06 April 2006
Ascent Resources plc
Director shareholding
Jonathan Legg, a director of the Company, has today purchased 210,526 ordinary shares in the Company at a price of 9.5p per share. Following this purchase, he is interested in 373,526 ordinary shares in the Company, representing 0.15 per cent. of the issued share capital of the Company.
6 April 2006
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OverEasy
Platinum Contributor
Joined: 13-Mar-05
Location: Australia
Posts: 500
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| Posted: 08-Apr-06 at 02:12 | IP Logged
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More good news for AST holders and of course 1 million is no small buy (nearly £100,000) even for a director ! :)
Ascent Resources PLC 07 April 2006
Ascent Resources plc
Director shareholding
Malcolm Groom, a director of the Company, has today purchased 1,000,000 ordinary shares in the Company at a price of 9.625p per share. Following this purchase, he is interested in 1,597,705 ordinary shares in the Company, representing 0.63 per cent. of the issued share capital of the Company.
7 April 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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