REG - Ascent Resources PLC - Update on former JV Partner’s Insolvency Process

Ascent ResourcesAnnouncement

11/12/2024 07:00

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RNS Number : 5737P  Ascent Resources PLC  11 December 2024

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.

11 December 2024

Ascent Resources plc

("Ascent" or the "Company")

Update on former JV Partner's Insolvency Process &

Confirmation of Court Approved List of Tested Claims

Ascent Resources Plc (LON: AST) is pleased to update shareholders that the
Company's lawyers have been notified that the relevant insolvency Court in
Slovenia has ruled on the submitted creditor claims in the insolvency
proceedings of the Company's former Slovenian joint venture partner, Geoenergo
d.o.o. ("Geoenergo"). Based on this Court ruling, the insolvency administrator
has prepared the final list of tested claims, which is expected to be publicly
announced by the administrator as soon as possible. As announced by the
Company on 18 April 2024, the Company submitted Claims in the insolvency
proceedings relating to both monies held on account by Geoenergo on behalf of
Ascent Slovenia Limited ("ASL") as well as revenues owed by Geoenergo to ASL
pursuant to the binding interim arbitration decision (as announced 25 October
2023) as well as a claim relating to ASL's share of JV property.

The Company confirms that the Court has approved ASL's conditional claim of
€3,038,944 relating to ASL's share in JV plant and property subject to ASL
signing a handover memo, which ASL intends to complete shortly. Furthermore,
the Court has approved €2,699,123 (as proposed by the Administrator) out of
the total €7,780,501 claimed by the Company in revenues owed from production
above the baseline profile (as ASL was confirmed it was owed in the binding
interim arbitration decision in October 2023). The Company is confident that
the Administrator's calculation which includes a deduction of gross area
production costs against ASL's total claim amount is manifestly wrong and ASL
will now submit a claim with the relevant Court within the 30 day window
following the administrator's public announcement of the court ruling and
expects to resume the domestic arbitration proceedings (which were suspended
when Geoenergo went into insolvency) to get a binding decision on quantum of
the amounts due to ASL, following which the Company expects the disputed
balance of €5,081,378 to also be recognised as well as an award on costs,
following which the Court will accept ASL's claim for payment of these sums
totalling a further €139,454.

The Court has also approved ASL's claim for €51,941.17 related to funds
pre-paid in relation to JV abandonment liabilities, which ASL deposited in the
insolvent debtor's account but which were not transferred to the state
rehabilitation fund, EKO sklad. Furthermore, ASL remains confident that it is
entitled to an additional €62,014.71, which it paid to Geoenergo to be
transferred to EKO sklad and which Geoenergo subsequently transferred to the
EKO Fund in its own name and for its own account. ASL intends to pursue also
this claim in the relevant Court.

The relevant insolvency Court has further upheld ASL's objection to
recognising the Republic of Slovenia's claim for full concession area
abandonment liabilities of €2,405,719 as a valid creditor claim against the
insolvency estate. The court agreed with ASL's position that these liabilities
were not due at the time Geoenergo entered insolvency.

The Court has approved a total of €3,319,397 of valid claims, of which ASL
currently has approved valid claims of €2,751,064, representing
approximately 82% of the insolvency creditors' claims on the estate.
Furthermore the Company has a conditional claim over the moveable plant and
property of €3,038,944, subject to signing the handover memo which ASL
intends to do shortly. The Company has been informed that the cash on account
for the benefit of the insolvency estate towards the end of September was
€1,660,982 and the Company understands that production of hydrocarbons is a
continuing activity within the Petisovci concession area. ASL's recovery of
amounts claimed remains subject to the continuing insolvency proceedings and
the final cash realisable value of the insolvency estate, which may be less
than the full amounts owed to approved creditors. Further updates will be
announced as required.

 

Enquiries:

 Ascent Resources plc                  Via Vigo Consulting

 Andrew Dennan, CEO

 Zeus, Nominated Adviser & Broker      0203 829 5000

 James Joyce / Sarah Mather

 Novum Securities, Joint Broker        0207 399 9400

 John Belliss

 

 

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