REG - Ascent Resources PLC - Successful Revenue Recognition Arbitration

Ascent ResourcesAnnouncement

25/10/2023 12:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231025:nRSY2863Ra&default-theme=true

RNS Number : 2863R  Ascent Resources PLC  25 October 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.

 

25 October 2023

Ascent Resources plc

("Ascent" or the "Company")

Successful Revenue Recognition Arbitration

Ascent Resources Plc (LON: AST), the onshore Hispanic American and European
focussed energy and natural resources company is delighted to announce receipt
of a positive Arbitration Tribunal binding interim decision, confirming Ascent
Slovenia Limited (ASL)'s entitlement to proceeds above the baseline production
profile from all wells in the concession area.

As previously announced, in June 2023 ASL had its Arbitration Tribunal hearing
against Geoenergo regards the different interpretations of the RJOA relating
to ASL's entitlement to production above the baseline production profile, as
set out in the 2013 Restated Joint Operating Agreement, for all wells in the
concession area whilst it is in preferential recovery mode (i.e. until it has
recovered its investment of over €50 million).

The Arbitration Tribunal has now issued a binding interim decision which
confirms that ASL's interpretation of the RJOA is the correct one. This
confirms that, whilst ASL is in a preferential recovery position, ASL is
entitled to a 90% share of the hydrocarbons produced above the baseline
production profile from all of the wells on the concession area (except for
the Pg-1 well which is included in the baseline production). This means that
in addition to the PG-10 and PG-11A revenues the Company has been receiving it
will now also be entitled to receive on-going monthly revenues from incumbent
wells, i.e. Pg-3, Pg-5, PG-6, Pg-7, Pg-9 (if it produces again) and the Dolina
and Pt wells.

The Arbitration Tribunal will now decide the final award in the second stage
of the bifurcated procedure. ASL has proposed to the Arbitration Tribunal to
instruct Geoenergo to produce specific production and financial information so
the exact quantum of the award for the proceeds ASL is entitled to since
December 2019 (being the three-year statutory limit for claims triggered by
the December 2022 arbitration filing date) can be verified and awarded. The
second stage of the arbitration process is expected to complete by 11 April
2024.  As previously announced, ASL continues to estimate that these
proceeds, which have already been received by Geoenergo, are likely to be in
the magnitude of in excess of € 3.5 million due to ASL, although any actual
monies receivable would be determined by the Arbitration Tribunal. Further
updates will be announced in due course.

Andrew Dennan, Chief Executive Officer comments;

 

"We are very pleased to have received this multi million euro arbitration
tribunal decision, which underlines what has been evident to the current
Ascent team for some time and now and finally is being resolved formally and
in a binding way."

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

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDNKPBKDBDDCKB