Ascent Resources PLC Concession Extension,Partner Dispute &Subscription (0620B)
May 30 2023 - 9:35AM
UK Regulatory
TIDMAST
RNS Number : 0620B
Ascent Resources PLC
30 May 2023
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.
30 May 2023
Ascent Resources plc
("Ascent" or the "Company")
Concession Extension, Partner Dispute Timing & Equity
Subscription Update
Ascent Resources Plc (LON: AST), the onshore Hispanic American
and European focussed energy and natural resources company
announces recent developments with the concession extension, an
update to the timing of its JV partner arbitration and the
termination of the previously announced subscription by Beryl
International Pty to avoid equity dilution given recent positive
developments in the business.
Concession Extension
The Company has been notified by its joint venture partner,
Geoenergo, who is also the Petišovci concession holder, that it has
submitted a concession extension application, ahead of the
application deadline which falls 6 months before the concession
expiry date 28 November 2023. The Company also notes that the
National Assembly of Slovenia passed legislative changes last week
which will automatically extend mining rights that expire in 2023
and 2024 by 30 months due to the administrative backlog created as
an impact of COVID-19. This is expected to be published in
Slovenia's Official Gazette imminently and comes in to force 24
hours later. Therefore subject to the concession holder making an
addendum application to take advantage of the legislative changes
within 30 days after the law comes in to effect, the Company
expects the concession expiry to be extended to the end of May
2026.
Revenue Recognition Dispute
The Company is pleased to also update shareholders that the
revenue recognition arbitration hearing against its JV partner,
Geoenergo, is now scheduled for two days in mid-June. This
arbitration relates to the parties' different interpretations of
the application of the baseline production profile and the number
of wells ASL is entitled to receive a portion of revenues from
whilst it is in a preferential cost recovery mode. The Company and
its legal advisors strongly believe in the merits of its legal
case, where it is pursuing partners for EUR3+ million of revenue as
previously announced.
Beryl Subscription
As previously announced on 28 February and 21 March, Beryl
International Pty, an African diversified investment company,
signed a strategic collaboration agreement with the Company
pursuant to which they were to subscribe for GBP1M new equity and
appoint Mr Fungai Chitungo to the Board as non-executive director
of the Company. Given the near term revenue recognition dispute
arbitration, which if the Company wins would provide significant
additional funding, coupled with the recent successful equity
funding and the fact that Beryl have failed to provide confidence
to the Ascent Board on its ability to complete their commitments
under the subscription agreement in a timely manner, and with a
view to avoid unnecessary equity dilution, the Company has
therefore terminated the transaction.
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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