REG - Ascent Resources PLC - Concession Extension,Partner Dispute &Subscription

Ascent ResourcesAnnouncement

30/05/2023 15:45

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RNS Number : 0620B  Ascent Resources PLC  30 May 2023

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

30 May 2023

Ascent Resources plc

("Ascent" or the "Company")

Concession Extension, Partner Dispute Timing & Equity Subscription Update

Ascent Resources Plc (LON: AST), the onshore Hispanic American and European
focussed energy and natural resources company announces recent developments
with the concession extension, an update to the timing of its JV partner
arbitration and the termination of the previously announced subscription by
Beryl International Pty to avoid equity dilution given recent positive
developments in the business.

Concession Extension

The Company has been notified by its joint venture partner, Geoenergo, who is also the Petišovci concession holder, that it has submitted a concession extension application, ahead of the application deadline which falls 6 months before the concession expiry date 28 November 2023. The Company also notes that the National Assembly of Slovenia passed legislative changes last week which will automatically extend mining rights that expire in 2023 and 2024 by 30 months due to the administrative backlog created as an impact of COVID-19. This is expected to be published in Slovenia's Official Gazette imminently and comes in to force 24 hours later.  Therefore subject to the concession holder making an addendum application to take advantage of the legislative changes within 30 days after the law comes in to effect, the Company expects the concession expiry to be extended to the end of May 2026.

 

Revenue Recognition Dispute

The Company is pleased to also update shareholders that the revenue
recognition arbitration hearing against its JV partner, Geoenergo, is now
scheduled for two days in mid-June. This arbitration relates to the parties'
different interpretations of the application of the baseline production
profile and the number of wells ASL is entitled to receive a portion of
revenues from whilst it is in a preferential cost recovery mode. The Company
and its legal advisors strongly believe in the merits of its legal case, where
it is pursuing partners for €3+ million of revenue as previously announced.
 

Beryl Subscription

As previously announced on 28 February and 21 March, Beryl International Pty,
an African diversified investment company, signed a strategic collaboration
agreement with the Company pursuant to which they were to subscribe for £1M
new equity and appoint Mr Fungai Chitungo to the Board as non-executive
director of the Company.  Given the near term revenue recognition dispute
arbitration, which if the Company wins would provide significant additional
funding, coupled with the recent successful equity funding and the fact that
Beryl have failed to provide confidence to the Ascent Board on its ability to
complete their commitments under the subscription agreement in a timely
manner, and with a view to avoid unnecessary equity dilution, the Company has
therefore terminated the transaction.

Enquiries:

 Ascent Resources plc                        Via Vigo Communications

 Andrew Dennan
 WH Ireland, Nominated Adviser & Broker      0207 220 1666

 James Joyce / Sarah Mather
 Novum Securities, Joint Broker              0207 399 9400

 Jon Belliss

 

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