Update on Slovenian Direct Settlement Discussions

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 €100 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 Andrew Dennan	Via Vigo Communications
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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