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30 May 2023 15:35
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 €3+ 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 £1M 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 Andrew Dennan | Via Vigo Communications
|
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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