Ascent Resources PLC Slovenia : Mining Act Amendments and JV Updates (2789J)
27 April 2022 - 12:00AM
UK Regulatory
TIDMAST
RNS Number : 2789J
Ascent Resources PLC
26 April 2022
26 April 2022
Ascent Resources plc
("Ascent" or the "Company")
Slovenia : Mining Act Amendments, Claim Funding and JV
Updates
Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic
American and European focused energy and natural resources company,
provides an update on developments in Slovenia and on its ECT/BIT
claim funding.
Changes to the Slovenia Mining Act
Further to the Company's announcement on 16 March 2022 which
noted the proposed amendments to the Slovenian mining law, on 6
April the Republic of Slovenia voted to adopt amendments to the
mining law which included provisions that explicitly prohibit
holders of mining rights from being able to carry out exploration
or exploitation of hydrocarbons with the use of any form of
hydraulic stimulation. The newly adopted amendments will be
published in the Official Gazette of the Republic of Slovenia,
which is expected imminently, and will come in to force fifteen
days later. These amendments will confirm that it is now no longer
possible to obtain a permit for exploration or to be granted mining
rights for the exploitation of hydrocarbons produced with the use
of hydraulic stimulation.
Consequently, the Company does now not expect to complete
certain workstreams relating to the permits and applications to
re-stimulate the PG-10 and PG-11A wells. The Company is now
reviewing future field development opportunities in light of this
political development and is reviewing all previously envisaged
workstreams including the EIA permitting and concession extension
processes.
ECT and BIT Damages Claim Against Slovenia
This development is a further breach by the Republic of Slovenia
of its obligations under the Energy Charter Treaty and UK-Slovenia
Bilateral Investment Treaty. As a result, the Company has been
deprived of the full value of its investments in Slovenia given
that it 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 are expected
to lead to a significant increase in the Company's damages
claim.
The Company has also been advised by its lawyers that material
progress has been made in relation to completing the binding
damages based agreement, and the paperwork to complete the
previously announced funding is now expected in the coming
weeks.
Production and Revenue Recognition Update
The JV continues to produce gas and condensate from wells in the
concession area which is sold domestically to local industrial
buyers. In March 2022, the PG-10 and PG-11A wells produced over
140,000 scm of gas which was sold with a monthly volume weighted
average price of circa EUR140 / MWh resulting in over EUR220,000 of
gross invoiceable revenue net to Ascent's interest in these two
wells. The Company has invoiced its JV partner, Geoenergo, for
receipt of these gas revenue proceeds. Further updates on
production revenues and receipt of cash proceeds from April 2020
through to March 2022 will be announced in due course.
Enquiries:
Ascent Resources plc Via Vigo Communications
Andrew Dennan
WH Ireland, Nominated Adviser & Broker
James Joyce / Sarah Mather 0207 220 1666
Novum Securities, Joint Broker
Jon Belliss 0207 399 9400
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