Ascent Resources PLC Update on Slovenian Direct Settlement Discussions (9281S)
20 March 2021 - 3:56AM
UK Regulatory
TIDMAST
RNS Number : 9281S
Ascent Resources PLC
19 March 2021
19 March 2020
Ascent Resources plc
("Ascent" or the "Company")
Update on Slovenian Direct Settlement Discussions, Operations
and the Petišovci Joint Venture Contractor
Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic
American and European focused energy and natural resources company,
announces that it intends to initiate arbitration proceedings
against the Republic of Slovenia (the "Government of Slovenia" and
the "State") following a response from the State today in which the
State failed to set forward a damages proposal and confirms that an
amicable settlement is presently not achievable. The Company also
provides an update on ongoing operations in Slovenia and Joint
Venture matters.
Dispute with the Republic of Slovenia
As announced on 24 July 2020, the Company formally notified the
Government of Slovenia of the existence of disputes under the
UK-Slovenia Bilateral Investment Treaty (the "BIT") and the Energy
Charter Treaty (the "ECT"). Following the issuance of the Notice of
Dispute, the Company triggered a compulsory minimum three month
'cooling-off' period, designed to allow the parties to attempt to
resolve their dispute ahead of arbitration proceedings.
On 22 October 2020, ninety days after the serving of the Notice
of Dispute, the Company announced that it was entering into direct
negotiations with the Government of Slovenia, with a view to
potentially settling the claim in an amicable manner. Furthermore,
on 22 February 2021, the Company confirmed that, at the request of
the State, it would not initiate arbitration proceedings prior to
19 March 2021.
The Company announces that, following a further letter from the
State received today, an amicable settlement is presently not
achievable and it expects to commence arbitration proceedings
shortly. As part of direct pre-arbitration settlement discussions
the Company had submitted a damages calculation to the State
totalling significantly in excess of EUR100 million.
Further announcements will be made as appropriate.
Petišovci Project Operations Update
Further to the announcement of 10 February 2021, the PG-11A well
is now producing at approximately 7,500 - 10,000 scm/day, with
sales gas being evacuated via the export pipeline to INA in
Croatia. Whilst it is ultimately expected that the pressure at
PG-11A will decline to unsustainable levels without mechanical
stimulation (which forms part of the damages claim against the
State), the Company is pleased PG-11A is currently producing and
intends to continue production whilst it is possible to do so.
JV Contractor Update
The Company has received confirmation from the Local Court in
Ljubljana that it has annulled the enforcement order filed by the
JV contractor against its subsidiary, Ascent Slovenia Ltd, as
announced on 10 March 2021. Whilst the matter will now be referred
to the District Court in Ljubljana, this Court also is not the
correct jurisdiction for any disputes under the relevant agreements
in place and accordingly the Company expects it will also be
rejected by this court.
The Company continues to believe that this claim is incorrect
and totally without merit nor substance and that an amicable
settlement will be achieved eventually.
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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