Ascent Resources PLC Update on Slovenian JV partner negotiations (0319C)
06 October 2022 - 8:43PM
UK Regulatory
TIDMAST
RNS Number : 0319C
Ascent Resources PLC
06 October 2022
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.
6 October 2022
Ascent Resources plc
("Ascent" or the "Company")
Update on Slovenian JV partner negotiations
Ascent Resources Plc (LON: AST), the onshore Hispanic American
and European focussed energy and natural resources company,
provides an update in relation to its legacy disputes with its
Slovenian JV Partner Geoenergo* and the JV operating service
provider Petrol Geo**. Ascent considers Geoenergo and Petrol Geo,
given their common ownership, to be connected parties.
As previously announced on 2 August 2022, Ascent Slovenia
Limited ("ASL") and its Slovenian JV partner, Geoenergo, agreed
ASL's entitlement to hydrocarbon revenues produced from the PG-10
and PG-11A wells for the period April 2020 through to June 2022.
ASL received a net payment of EUR650,560, as announced on 12
August, relating to the 2020 and 2021 gas sales proceeds from the
PG-10 and PG-11A wells less certain costs. The parties have agreed
that ASL is entitled to a EUR857,617 payment for the 1H 2022 gas
sales revenues, which accrues interest at a rate of 9% per annum
while ASL awaits receipt of payment of these agreed but outstanding
amounts. Additionally, ASL has accrued a further amount owed to it
of circa EUR370,000 for production through Q3. The current balance
owed to ASL, as at end September, for the PG-10 and PG-11A wells,
is estimated to be circa EUR1,227,617 and this figure is expected
to increase monthly by approximately EUR100,000 / month assuming
forward production of 100,000scm/month and a gas price of
EUR100/MWh.
ASL and Geoenergo have now completed the high court
judge-supervised mediation process and ASL has today initiated
arbitration proceedings against Geoenergo to seek a binding and
enforceable resolution, which was not available through mediation.
The arbitration process is targeting immediate payment to ASL of
its share of the 2022 PG-10 and PG-11A hydrocarbon sales revenues
agreed with Geoenergo but currently withheld by it, the timely
payment of all future invoices, and a binding resolution on which
wells are included in ASL's revenue entitlement. ASL has a total
claim in excess of Euro 4M and expects to make material progress on
this domestic arbitration process ahead of the year end.
Once matters are resolved with Geoenergo, ASL expects to be able
to rapidly conclude disputed matters with Petrol Geo, the JV's
operating service provider. However, in the meantime, ASL expects
during Q4 to enter into a mediation process with Petrol Geo in
relation to ASL's planned contractual default, as announced 28 May
2020, relating to an amount of circa EUR230k owed to Petrol Geo for
services provided in 2019 as well as in relation to invoices
rejected by the JV on a monthly basis since April 2020, totalling
circa EUR1.4M.
*Geoenergo is a Slovenian operating company whose only asset is
its interest in the Petisovci license. Geoenergo is owned joint and
equally by Nafta Lendava d.d.o (a 100% directly Slovenian
state-owned entity) and by Petrol d.d. (a 30+% indirectly
controlled state-owned publicly listed entity)
**Petrol Geo is a 100% owned subsidiary of Petrol d.d. (a 30+%
indirectly controlled state owned publicly listed entity).
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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