Companies: AST   

A gas flow from Hungary's Peneszlek field has encouraged AIM-quoted Ascent Resources to probe other targets in the country.

According to Ascent, drilling and testing a second 'interval' in the PEN-104 well within its 2,483 sq km Peneszlek licence area in eastern Hungary has produced a flow rate of 3.4 million cubic feet a day, equivalent to 600 barrels of oil a day. Although the first interval did not flow, the company, steered by managing director Jeremy Eng, claims this validates its geological model and seismic interpretation of the area and 'increases the company's confidence in the target horizons for the next wells to be drilled.'

Eng says 'this is the first well to be drilled in this area for more than 20 years and it is encouraging that the well has made a new gas discovery.' He adds that Ascent, which is testing Peneszlek with partners DualEx of Canada and Petro Pequina of Sweden, has already chosen four other drilling locations there.

London-based Ascent, which lost £599,000 in the six months to June, has stakes in more than 20 oil and gas projects in Italy, Switzerland, Spain, Romania, offshore Netherlands and Hungary. The company, whose chairman is Australian entrepreneur David Steinepreis, is drilling six exploration wells, two each in Spain, Italy and Hungary.

Ascent shares have veered between 1.25p and 15.25p over the past three years and are 2.5p up today at 15p, valuing the company at £38.2 million. They should still outperform some others in the sector.