Business
Update on Disputes, Placing & TVR
Update on Disputes, Placing & TVR.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \n \n \n 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.\n \n \n \n \n \n \n 4 April 2023\n \n \n \n Ascent Resources plc\n \n \n \n \n (\"Ascent\" or the \"Company\")\n \n \n \n \n Resolution of Slovenian Partner Disputes, Equity Placing and Total Voting Rights\n \n \n \n Ascent Resources Plc (LON: AST), the\n onshore Hispanic American and European focussed energy and natural resources company, is pleased to announce that it has entered into agreements to settle a portion of its revenue recognition claim against Geoenergo and to settle in full the dispute with the JV service provider, Petrol Geo.\n \n \n \n Service Provider Dispute Resolved\n \n \n \n The Company is pleased to confirm that Ascent Slovenia Limited (\"ASL\") has achieved a positive resolution in the mediation process between ASL and Geoenergo as joint venture (\"JV\") partners and Petrol Geo as JV service provider. Petrol Geo's claims against the JV over disputed and rejected invoices claimed since 2019 through to February 2023, totalling €2,083,491 (plus claimed interests and costs), have been settled for €1,436,000. This represents a discount of approximately 30% to the face value.\n \n \n Furthermore, the JV has successfully renegotiated a reduction in the field operating service provider's fixed fee to the higher of i) €20,000 per month, being a 55% discount to the prior fee level; or ii) 35% of ASL's share of the hydrocarbons produced from the PG-10 and PG-11A wells. The previous fee was a fixed €44,000 per month, which was unstainable when the gas prices were lower and production levels were lower. This renegotiated fee level increases the profitability of the remaining production ahead of the scheduled concession expiry on 28 November 2023. Furthermore, the new structure aligns the field operator with Ascent to maximise production. \n \n \n \n Partial Resolution of Revenue Recognition Dispute\n \n \n \n As part of the agreements with Petrol Geo, ASL has also successfully resolved an important part of i...