REG - Ascent Resources PLC - Serving of Notice of Dispute

Ascent ResourcesAnnouncement

05/05/2022 07:00

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RNS Number : 3693K  Ascent Resources PLC  05 May 2022

5 May 2022

Ascent Resources plc

("Ascent" or the "Company")

Serving of Notice of Dispute

Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic American and
European focussed energy and natural resources company, announces that Ascent
Resources Plc and its subsidiary Ascent Slovenia Ltd (together "the
Investors"), have today formally notified the Government of the Republic of
Slovenia (the "Government of Slovenia") of further breaches under the UK -
Slovenia bilateral investment treaty (the "BIT") and the Energy Charter Treaty
(the "ECT").

In particular, the Government of Slovenia has been notified of the fact that
their latest actions, which include amendments to the mining law which
specifically prohibit holders of mining rights from carrying out the
exploration or exploitation of hydrocarbons with the use of any hydraulic
stimulation, have caused further considerable harm to the Investors'
investments in Slovenia. The Company believes it is the specific target of
these actions, having been referred to as the "British Corporation" in the
parliamentary discussions which took place around the subject, and such
actions deprive the Investors of realising the full value of their investment
in the country, given that the Company and its JV partner, Geoenergo, have
always expected to conduct the historic practice of mechanically stimulating
the tight gas reservoir to produce hydrocarbons. These actions by the
Government of Slovenia constitute further breaches of the protections
established by the BIT and the ECT, including, inter alia the prohibition of
expropriation, the guarantee that the investments would be accorded fair and
equitable treatment and Slovenia's guarantee that the management, maintenance,
use, enjoyment or disposal of the investments would not be impaired by
arbitrary, unreasonable or discriminatory measures.

The Company remains committed to defending its investment of over € 50
million in Slovenia and following the expected imminent completion of the
damages-based agreement with Enyo Law LLP, the Company will vigorously pursue
its damages claim through in international arbitration. The Investors continue
to sincerely hope that an amicable solution can be found to the present
dispute and following the failure of earlier negotiations with the Government
of Slovenia in Q4 2020 and Q1 2021, the Investors welcome any constructive
proposals that compensate the Investors for their losses. The Investors remain
ready to re-engage at a senior level with the Government of Slovenia at the
earliest possible opportunity for meaningful and prompt discussions. The
Investors' fully reserve all of their rights and remedies arising out of what
they strongly believe to be Slovenia's treaty breaches.

A copy of the Notice is available at the Company's website
https://www.ascentresources.co.uk/investors/presentations-documents/

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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