Ascent Resources PLC Slovenia Update (8935E)
March 16 2022 - 2:00AM
UK Regulatory
TIDMAST
RNS Number : 8935E
Ascent Resources PLC
16 March 2022
16 March 2022
Ascent Resources plc
("Ascent" or the "Company")
Slovenia : Gas Price Update, Mining Law Amendments and Potential
Damages Uplift
Ascent Resources Plc (LON: AST), the onshore Caribbean, Hispanic
American and European focused energy and natural resources company,
provides an update on gas prices at its Petisovci gas project in
Slovenia alongside amendments to the Slovenian Mining Law with
consequent potential uplift in the Company's damages claim.
The Company notes continued significant strength in global gas
prices with the Central Eastern Gas Hub ("CEGH") day ahead market
price, at the close on Tuesday, of Euro 117.958 / MWh and a prior
weekly average price of Euro 173.095 / MWh, which represents over
270% increase on the 2021 average price.
The Company now expects, at current production levels and
assuming an average monthly gas price of Euro 120 / MWh, continuing
production from only the PG-10 and PG-11A production wells to
generate gross production revenues net to the Company's interest in
the JV (after extraction, processing and handling costs) of at
least Euro 150,000 per month. This is a circa 50% increase on the
Company's expectation announced on 11 October 2021. Revenues
continue to accrue on the JV account whilst the Company continues
to discuss the various previously announced disputed JV matters
with its JV partner and service provider. However, the Company has
now decided to invoice its share of concession production revenues
relating to the period from April 2020 to February 2022, which were
previously not invoiced pending resolution of the previously
announced disputes.
The Company also notes recent proposed amendments to the
Slovenian mining law, which, amongst other items, include further
restrictions on hydraulic-stimulation with Slovenia now seeking to
prohibit all forms of hydraulic stimulation for the purpose of
exploration or exploitation of hydrocarbons. The Company and its
advisors see this development as further reinforcing its claim
against the Republic of Slovenia under the Energy Charter Treaty
and UK-Slovenia Bilateral Investment Treaty, given that the joint
venture 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 could lead
to a significant increase in the Company's damages claim.
The Company continues to await fulfilment of the conditions
precedent relating to the signed and binding damages based funding
agreement for the international arbitration dispute and to
demonstrate their confidence in the funding closure, the Directors
and select other advisers have agreed that the Company will
withhold 25% of their salaries and fees until the funding
arrangement with Enyo Law LLP has completed.
Further announcements will be made 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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END
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