Ascent notifies Slovenia of contractual breach over changes to mining law

The prohibition constitutes further breaches of the protections established by the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty, including, inter alia the prohibition of expropriation, the guarantee that the investments would be accorded fair and equitable treatment and Slovenia's guarantee that the management, maintenance, use, enjoyment or disposal of the investments would not be impaired by arbitrary, unreasonable or discriminatory measures, Ascent Resources said in a filing with the London Stock Exchange.

The amendments to the mining law which specifically prohibit holders of mining rights from carrying out the exploration or exploitation of hydrocarbons with the use of any hydraulic stimulation, have caused further considerable harm to Ascent Resources' investments in Slovenia, the company said.

Ascent Resources remains ready to re-engage at a senior level with the Slovenian government at the earliest possible opportunity for meaningful and prompt discussions, it added.

Last month, Slovenia's parliament adopted draft amendments to the mining law to ban large-scale hydraulic fracturing for the purpose of exploration or exploitation of hydrocarbons.

Ascent Resources holds 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.