Ascent to distribute potential proceeds from claim against Slovenia

The intention is to give qualifying stakeholders the opportunity of having ring-fenced access to a significant portion of the net proceeds resulting from a successful claim, which is not exposed to further changes in the capital structure of the company, Ascent Resources said in a filing to the London Stock Exchange on Friday.

As part of this process, Ascent is creating a fully-owned special purpose vehicle, with which the claimants are expected to enter into a deed of transfer about 49% of the net proceeds to be received in the event of a successful claim outcome.

Ascent plans to convene a general meeting where the board will request shareholder approval for a bonus issue of new preference shares or another form of distribution mechanism on a specified record date which is likely to be the date of the general meeting in January 2024, Ascent Resources said.

In 2019, Ascent demanded 50 million euro ($54 million) in damages from Slovenia resulting from delays in permitting relating to the further development of Petisovci gas field, after environment agency ARSO requested an environmental impact assessment study of the company's project to re-stimulate the producing Pg-10 and Pg-11A gas wells.

Ascent said in April it entered into agreements to settle part of its revenue recognition claim against Geoenergo, a company jointly owned by Slovenian state-owned oil company Nafta Lendava and Slovenia's leading energy conglomerate Petrol [LJE:PETG]. Geoenergo has agreed to pay in full a 1.7 million euro ($1.85 million) claim for its non-payment of agreed hydrocarbon revenues owed to Ascent from January 2022 to February 2023.

The UK-listed company owns 75% interest in the Petisovci project, which lies in the northeastern corner of Slovenia between Hungary and Croatia, with Geoenergo holding the remaining 25%. In July 2022, Ascent and Geoenergo initiated mediation process under a dispute resolution mechanism regarding alleged contractual breaches caused by the restrictions on hydraulic stimulation of gas extraction in the country.

($ = 0.91944 euro)