REG - Ascent Resources PLC - Slovenia Update

Ascent ResourcesAnnouncement

16/03/2022 07:00

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RNS Number : 8935E  Ascent Resources PLC  16 March 2022

16 March
2022

Ascent Resources plc

("Ascent" or the "Company")

Slovenia : Gas Price Update, Mining Law Amendments and Potential Damages
Uplift

 

Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic American and
European focused energy and natural resources company, provides an update on
gas prices at its Petisovci gas project in Slovenia alongside amendments to
the Slovenian Mining Law with consequent potential uplift in the Company's
damages claim.

The Company notes continued significant strength in global gas prices with the
Central Eastern Gas Hub ("CEGH") day ahead market price, at the close on
Tuesday, of Euro 117.958 / MWh and a prior weekly average price of Euro
173.095 / MWh, which represents over 270% increase on the 2021 average
price.

The Company now expects, at current production levels and assuming an average
monthly gas price of Euro 120 / MWh, continuing production from only the PG-10
and PG-11A production wells to generate gross production revenues net to the
Company's interest in the JV (after extraction, processing and handling costs)
of at least Euro 150,000 per month.  This is a circa 50% increase on the
Company's expectation announced on 11 October 2021. Revenues continue to
accrue on the JV account whilst the Company continues to discuss the various
previously announced disputed JV matters with its JV partner and service
provider.  However, the Company has now decided  to invoice its share of
concession production revenues relating to the period from April 2020 to
February 2022, which were previously not invoiced pending resolution of the
previously announced disputes.

The Company also notes recent proposed amendments to the Slovenian mining law,
which, amongst other items, include further restrictions on
hydraulic-stimulation with Slovenia now seeking to prohibit all forms of
hydraulic stimulation for the purpose of exploration or exploitation of
hydrocarbons. The Company and its advisors see this development as further
reinforcing its claim against the Republic of Slovenia under the Energy
Charter Treaty and UK-Slovenia Bilateral Investment Treaty, given that the
joint venture 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 could lead to a significant increase in the
Company's damages claim.

The Company continues to await fulfilment of the conditions precedent relating
to the signed and binding damages based funding agreement for the
international arbitration dispute and to demonstrate their confidence in the
funding closure, the Directors and select other advisers have agreed that the
Company will withhold 25% of their salaries and fees until the funding
arrangement with Enyo Law LLP has completed.

 Further announcements will be made 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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