Ascent Resources plc has cancelled the delayed £1 million subscription by Beryl International Pty following developments in the arbitration over its onshore Slovenia gas joint venture.
TERMINATION
Ascent’s reasons for the move include the possible receipt of Slovenia funds, a recent £400,000 fundraise, Beryl’s failure “to provide confidence” on its ability to complete its commitment in a timely manner, and to avoid unnecessary equity dilution.
MINING RIGHTS
The company said it also expected an extension to its JV mining concession in Petišovci following new legislative developments.
Partner and licence holder Geoenergo has submitted an extension application, ahead of the application deadline six months before the expiry date of 28 November 2023.
Ascent also noted that the National Assembly of Slovenia had last week passed legislative changes which would “automatically extend mining rights expiring in 2023 and 2024 by 30 months” due to the administrative backlog created by Covid.
“This is expected to be published in Slovenia’s Official Gazette imminently and comes in to force 24 hours later,” added the company in a statement.
“Therefore subject to the concession holder making an addendum application to take advantage of the legislative changes within 30 days after the law comes in to effect, the company expects the concession expiry to be extended to the end of May 2026.”
REVENUE DISPUTE
Additionally, Ascent’s arbitration hearing against its partner, Geoenergo, has been brought forward for two days in mid-June.
The company had expected the tribunal’s final hearing to be in July 2023.
The dispute relates to the parties’ different interpretations of baseline production and the number of wells from which Ascent is entitled to receive a portion of revenues while it is in a “preferential cost recovery mode”.
The company is pursuing a claim of more than €3 million.