Energy hopeful Ascent Resources has suspended one Hungarian well, but hopes to prove Swiss gas resources worth £1 billion.

AIM-quoted Ascent, with ventures in six European countries, has suspended operations at PEN-102, one of its wells in Hungary’s Nyirseg blocks, after finding ‘only residual’ gas in a deeper section of the reservoir and is deliberating about further operations. Coming a month after a dry well at Hontomin in Spain, the news has depressed Ascent’s recently buoyant shares, but the company pointed out that PEN-102, now being surveyed for a possible ‘sidetrack well’, is only one of several prospects in Hungary and elsewhere.

Managing director Jeremy Eng said he sees potential for 400 billion cubic feet of gas overall in the company’s Hungarian prospects, with one, PEN-104, ‘capable of high production rates’. Ascent is already drawing modest cash flow from Spain's Ayoluengo oilfield and is seeking to find contributing partners for two projects in Italy’s Po Valley, which Eng suggested could hold 250 billion cubic feet, worth some £250 million.

Ascent, which has applied for a new gas licence at Rocamundo in Spain, has four blocks in Holland, with a potential 100 billion cubic feet, and is applying for more. The company also has oil and gas interests in Slovenia, but expressed particular excitement about Switzerland.

Ascent has 90 per cent joint ventures at Hermigan (where a farm-in with another group is on the cards) and elsewhere in the Vaud and Bern regions. Eng argues the Swiss projects could hold one trillion cubic feet of gas in all, worth around £1 billion, and declared this ‘could be proved in the next 12 months’.

Recommended here two years ago as a ‘flutter’ at 5p, Ascent shares hit 19.25p last month, but have now eased to 16.5p, down 0.75p this morning. Partial profit taking might be prudent short term, but they still have significant longer-term potential.