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11 Mar 2019 | 07:52

Ascent Resources pledges to maximise production from Petisovci project and appeal decision from Slovenian authorities

Ascent Resources on Monday said it would maximise production from its project at Petisovci as part of a new strategy to ramp up activity across Romania, Hungary and Croatia. The company also revealed it would appealing a decision from Slovenian authorities that had requested an environmental impact assessments be carried out at its wells.

The company detailed a new strategy that would maximise the potential of the Petisovci project by developing other parts of the field and surrounding potential in the shallower conventional zones, and focused on countries including Romania, Hungary and Croatia, with attractive geology in proven petroleum systems and well-established regulatory regimes.

Total production for February was 311,443 cubic metres and an average of 0.4m Mscfd, or 71 boepd, and revenue was €44,513, compared with the 412,763 cubic metres an average of 0.5m Mscfd / 81 boepd and revenue of €70,379 reported in January.

The company also provided a permitting update on in Slovenia; it planned to appeal a Slovenian Environment Agency decision, which had ordered an environmental impact assessment to be carried out relating to the project to re-stimulate the currently producing Pg-10 and Pg-11A wells.

'The key ground for appeal is the fact that all six expert government agencies which ARSO is required to consult as part of the screening assessment process concluded that no EIA should be required on the basis that the project to re-stimulate the wells is not likely to have significant effects on the environment.' 'Since the partners applied for the screening assessment back in May 2017, we will also challenge the Decision for not being issued within the two-month period prescribed by Slovenian law. The failure to comply with other provisions of Slovenian law as well as breaches of EU law will be detailed in the appeal.' Any potential claim for damages would take into account the amount invested by Ascent in the project, currently in excess of €50m, and future expected profits from the development of the field which was estimated to be a multiple of the existing investment. 'The Company will appeal this contradictory Decision. The Company has fully complied with the permitting process and received positive expert opinions from all government agencies which the Slovenian Environmental Agency was required to consult who concluded that the project was not likely to have a significant impact on the environment,' said Colin Hutchinson, CEO of Ascent Resources.

'This Decision provides further grounds for a significant claim for damages sustained by Ascent shareholders as a result of these continued unjustifiable delays to the development of the Petišovci project.'

Story provided by StockMarketWire.com
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