Ascent Resources PLC Slovenia Operation & Joint Venture Partner Update (7143R)
10 March 2021 - 06:00PM
UK Regulatory
TIDMAST
RNS Number : 7143R
Ascent Resources PLC
10 March 2021
10 March 2021
Ascent Resources plc
("Ascent" or the "Company")
Slovenia Operations & Joint Venture Partner Update
Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic
American and European focused energy and natural resources company,
announces an update on its operations in Slovenia and ongoing
matters with JV partners.
Petišovci Project Operations Update
Further to the announcement of 9 February, production at the
PG-11A well has now restarted following agreement with INA, in
Croatia, to re-open the pipeline evacuation route and to receive
export sales gas without a minimum offtake commitment for the
initial days of production stabilisation. An average production
rate in excess of 20,000 scm/day has initially been recorded. The
JV will continue to monitor production over the coming days and
only thereafter commit, to INA, daily sales gas delivery volumes on
a weekly basis. Revenues received from gas sales will first go
towards accrued and continuing JV operational overheads.
JV Partner Update
As announced on 28 May 2020, the Company's subsidiary Ascent
Slovenia Limited has been managing a planned contractual default
with its joint venture partner Geoenergo* and the local service
provider Petrol Geo*, in relation to historic amounts claimed of
circa EUR235k (which are provided for in the Company accounts) in
connection with the joint venture arrangements. Despite multiple
offers by the Company to settle matters, including to restructure
the JV arrangements, no amicable settlement with either Geoenergo*
or Petrol Geo* has been reached to-date.
In the meantime, Petrol Geo* has issued a local enforcement
order attempting to claim payment for an unsubstantiated amount of
EUR662,288.63 plus interest of EUR12,103.19. The Company has
appointed local counsel and immediately rejected this claim which
it considers, having taken legal advice, to be both incorrect and
totally without merit and substance, and in any event is being
claimed for outside of the dispute resolution mechanism provided
for in the relevant service agreement.
The Company continues to believe that an amicable settlement
will be achieved eventually.
Andrew Dennan, the Company's Chief Executive, commented:
"The resumption in production of export sales gas at PG-11A is a
positive development, coinciding with our dispute against the
Republic of Slovenia approaching a potentially significant
inflexion point this month.
It is of course disappointing to observe a JV service provider
pursuing a confrontational approach, possibly trying to take
advantage of the situation through what we regard as ill-timed and
unfounded legal manoeuvring. Notwithstanding, the Board will
continue to defend its investments in Slovenia and reserves its
right to pursue all available remedies and actions."
* The JV partner Geoenergo is 50% owned by Nafta Lendava (which
itself is an entity 100% owned by the Republic of Slovenia) and 50%
owned by Petrol (30% of which is directly and indirectly controlled
by the Republic of Slovenia). The JV Service Provider, Petrol Geo,
is a 100% subsidiary of Petrol.
Enquiries:
Ascent Resources plc Via Vigo Communications
Andrew Dennan
WH Ireland, Nominated Adviser & Broker
James Joyce / Chris Savidge 0207 220 1666
Novum Securities, Joint Broker
John Belliss 0207 399 9400
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