REG - Ascent Resources PLC - Corporate Update

Ascent ResourcesAnnouncement

10/09/2020 07:01

RNS Number : 5934Y
  
Ascent Resources PLC
  
10 September 2020
  
 

 10 September 2020 
 
Ascent Resources plc
("Ascent" or the "Company")
Corporate Update
Ascent Resources Plc (LON: AST) the onshore Caribbean, Hispanic American and European energy and natural resources company, is pleased to provide the following corporate update across its growing portfolio of interests;
 
Slovenia
 
In July the Company served the Republic of Slovenia with a Notice of Dispute setting out the Company's position on its unfair treatment in Slovenia and how its investment in the Petisovci field, which exceeds €50 million to date, has been damaged. This letter initiated a three-month cooling off period, beyond which the Company will be able to initiate International Arbitration proceedings pursuant to the Slovenian breaches of the UK Slovenia Bilateral Investment Treaty and the [EU] Energy Charter Treaty.  The Company is pleased to confirm it has appointed an independent quantum expert who is finalising their independent estimate of the total damages which is expected imminently. Folowing receipt of which, the Company is now initiating detailed discussions with specialist litigation financiers, some of whom have already proactively approached the Company following the serving of the Notice of Dispute.
 
The Company notes the significant improvement in the Central European Gas Hub Index ("CEGH") which has rallied over the summer months to €11.6 /MWh in September.  The CEGH futures out to the end of this year are currently trading higher than €13 /MWh.  At these levels the Petisovci project has the potewntial to be significantly cash generative.  
 
As previously announced the Company appointed an expert technical team to design the re-stimulation plans for the PG10 and PG11A wells and draft a revised Field Development Plan.  The outcome of this work is expected to be delivered by the end of September and will likely form the basis of an environmental impact assessment submission. The Executives expect to be in Slovenia later this month and are meeting key partners and other in-country stakeholders.
 
Cuba 
 
The Company continues its dialogue with The Cuban National Oil Company ("CUPET") in regard to the existing identified asset portfolio which is comprised of onshore producing block 9B and onshore  blocks 9A, 12 and 15. The Company has submitted its operator credentials and awaits feedback from the qualification process which is expected in due course. Production Sharing Contract ("PSC") negotiations will be initiated early October when the Executives are next scheduled to be in Havana.
 
Additionally, and building on the management team's access to Cuban deal flow, the Company has been and continues to review opportunities in the battery metals mining space with Cuban State owned and backed counterparties. Cuba has the fifth largest Nickel resource worldwide and the executive team see significant synergies in broadening its focus within Cuba. 
 
Business Development
 
The Company continues to pursue its Special Situations strategy, as announced previously, and is focusing on securing geographical diversity, commodity diversity and a pathway to  significant revenue stream in the course of the next 12 months. Further updates will be announced in due course.  
 
 



Ascent Resources plc
Andrew Dennan
 


Via Vigo Communications
 




WH Ireland, Nominated Adviser & Broker 
James Joyce / Chris Savidge


0207 220 1666




Novum Securities, Joint Broker
John Belliss
 


0207 399 9400



 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
UPDZZGMLKGVGGZG