March 16 (SeeNews) - UK-listed Ascent Resources could significantly increase its damages claim against Slovenia due to the proposed restrictions on hydraulic stimulation of gas extraction in the country, it said on Wednesday.
Ascent Resources and its joint venture partner 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 said in a statement.
In January, Slovenia's government adopted draft amendments to the mining law to ban large-scale hydraulic fracturing for the purpose of exploration or exploitation of hydrocarbons. The amendments eliminate various shortcomings in the original version of the law and were sent for consideration by parliament, the government said back then.
"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," Ascent Resources said.
In 2019, Ascent said it will demand 50 million euro ($54.9 million) in damages which claims it incurred as a direct result of a decision of the Slovenian environment ministry requiring an environmental impact assessment (EIA) for the re-stimulation of producing wells in Petisovci.
The company holds a 75% interest in the Petisovci project, which lies in the northeastern corner of Slovenia between Hungary and Croatia, and its joint venture partner Geoenergo holds the remaining 25%. The current concession was awarded to Geoenergo in 2002 and is due for renewal in 2022.
($ = 0.910162 euro)