REG - Ascent Resources PLC - Slovenia : Mining Act Amendments and JV Updates

Ascent ResourcesAnnouncement

26/04/2022 07:00

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RNS Number : 2789J  Ascent Resources PLC  26 April 2022

26 April
2022

Ascent Resources plc

("Ascent" or the "Company")

Slovenia : Mining Act Amendments, Claim Funding and JV Updates

 

Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic American and
European focused energy and natural resources company, provides an update on
developments in Slovenia and on its ECT/BIT claim funding.

Changes to the Slovenia Mining Act

Further to the Company's announcement on 16 March 2022 which noted the
proposed amendments to the Slovenian mining law, on 6 April the Republic of
Slovenia voted to adopt amendments to the mining law which included provisions
that explicitly prohibit holders of mining rights from being  able to carry
out exploration or exploitation of hydrocarbons with the use of any form of
hydraulic stimulation. The newly adopted amendments will be published in the
Official Gazette of the Republic of Slovenia, which is expected imminently,
and will come in to force fifteen days later. These amendments will confirm
that it is now no longer possible to obtain a permit for exploration or to be
granted mining rights for the exploitation of hydrocarbons produced with the
use of hydraulic stimulation.

Consequently, the Company does now not expect to complete certain workstreams
relating to the permits and applications to re-stimulate the PG-10 and PG-11A
wells. The Company is now reviewing future field development opportunities in
light of this political development and is reviewing all previously envisaged
workstreams including the EIA permitting and concession extension processes.

ECT and BIT Damages Claim Against Slovenia

This development is a further breach by the Republic of Slovenia of its
obligations under the Energy Charter Treaty and UK-Slovenia Bilateral
Investment Treaty. As a result, the Company has been deprived of the full
value of its investments in Slovenia given that it has always expected to be
able to continue the historic practise of conducting low volume mechanical
stimulation techniques in order to flow the tight gas reservoir. The Company
and its legal advisors are reviewing these latest developments which are
expected to lead to a significant increase in the Company's damages claim.

The Company has also been advised by its lawyers that material progress has
been made in relation to completing the binding damages based agreement, and
the paperwork to complete the previously announced funding is now expected in
the coming weeks.

Production and Revenue Recognition Update

The JV continues to produce gas and condensate from wells in the concession
area which is sold domestically to local industrial buyers. In March 2022, the
PG-10 and PG-11A wells produced over 140,000 scm of gas which was sold with a
monthly volume weighted average price of circa €140 / MWh resulting in over
€220,000 of gross invoiceable revenue net to Ascent's interest in these two
wells. The Company has invoiced its JV partner, Geoenergo, for receipt of
these gas revenue proceeds. Further updates on production revenues and receipt
of cash proceeds from April 2020 through to March 2022 will be announced in
due course.

 

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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