Ascent Resources plc said it expected to receive €1.68 million hydrocarbon revenues covering 26 months’ operations from its joint venture (JV) within the Petisovci concession area in Slovenia.
WELLS PG-10 & PG-11A
Ascent holds a 75% interest in the Petišovci project and its JV partner Geoenergo holds the remaining 25%.
The revenues are from the PG-10 and PG-11A wells for the period from April 2020 to June 2022.
Ascent said that mediation was scheduled for September to resolve the company’s claim to “significant additional hydrocarbon revenues” produced in the concession area.
The JV partners are also seeking to resolve a dispute with JV service provider in relation to disputed fixed fee operating invoices.
PARTIES
The company is aiming to resolve disputes with its JV partner Geoenergo as well as its operating service provider, Petrol.
Geoenergo is 50% owned by Nafta Lendava (100% government controlled entity) and 50% by Petrol Geo (a 30% government-controlled entity).
Petrol Geo is a 100% owned subsidiary of Petrol.
MEDIATION
Ascent said that following the appointment of a High Court Ljubljana judge as a mediator, the parties had agreed to the company’s entitlement to 90% of the hydrocarbons produced from the PG-10 and PG-11A wells.
“Accordingly, the company has issued new invoices for the period of April 2020 through to June 2022 for a total gross invoiceable amount of €1.688 million (including VAT) which the company’s 100% owned subsidiary, Ascent Slovenia Ltd, is expected to receive imminently,” added Ascent in a statement.
“Following receipt of the production revenues, the company expects to recognise historic costs relating to an historic liability owed to the field operator, the annual concession fee (approximately €0.2 million for the whole concession area) and potentially other costs.”
Ascent said it expected to show historic revenues and costs for financial years ending 31 December 2020, 2021 and 2022 in its final results following the end of the 2022 financial year.
The company added that disputes continued on revenues with its JV partner Geoenergo and on fixed service fee invoices with Petrol Geo.
STALEMATE
“We are very pleased to have agreed recognition of seven figure historic production revenues from the PG-10 and PG-11A wells,” said chief executive Andrew Dennan.
“This is a material development for the company as we continue to unlock the legacy commercial stalemate with our partners in Slovenia.”