ASCENT RESOURCES PLC

Legal Proceedings Report • May 6, 2016

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RNS Number : 5341X

Ascent Resources PLC

06 May 2016

6 May 2016

Ascent Resources plc

("Ascent" or "the Company")

IPPC Permit Decision

Ascent Resources plc, the AIM quoted European oil and gas exploration and production company updates the market on the decision from the Administrative Court in Slovenia ("the Court") in relation to the IPPC Environmental Permit application.

Petrol Geoterm, the contractor to our joint venture and the entity that filed the original IPPC Environmental application, has been informed on the Court's decision to withdraw the IPPC Permit which was granted by Slovenian Environment Agency in June 2015.

The reason given by the Court for this decision is that, after the original application was made in June 2014, the relevant law was changed and the process that was followed did not accord to the new law. This is despite the new law explicitly stating that any applications submitted (but not yet resolved) prior to the effective date for the new law should be pursued exclusively under the old rules. 

In summary the decision is not based on any objections to the Petišovci project but rather the permit application process. It is clear to the Company and its advisers that the decision of the Court is directly contrary to Slovenian law.

The Court has referred the matter back to the Slovenian Environment Agency, which previously approved the issue of the IPPC Environmental Permit, to decide how to proceed.  We hope that the Slovenian Environmental Agency continues to display the sound judgement they have shown so far in this process and challenges the decision of the Administrative Court.

If this decision is accepted by the Environmental Agency, then the Company and its partners will consider other legal remedies, including an appeal to a higher Slovenian or International Court and an action for damages for failing to uphold their own laws.

If uncorrected this decision may lead to an unnecessary delay in the Company's longer term plans to have gas treated and sold in Slovenia. However, it does not impact the Company's preferred route to first gas and revenue via outsourcing to a neighbouring country for treatment.  The Company continues to have positive discussions with its intended partner in this project and hopes to be able to update the market by the end of June.

Clive Carver, Chairman of Ascent, commented: 

"This decision is contrary to all legal opinions received by the Company and the explicit provisions of the prevailing law.  Additionally, we believe it goes against common sense and the overriding interests of the Slovenian state. Despite this unexpected ruling we remain confident that over time the clear national interests of the Slovenian economy of having its own reliable supply of gas will prevail and that the laws of the land will be followed.

Thankfully our preferred option to achieve first gas does not require the issue of the IPPC permit and remains on track."

Enquiries:

Ascent Resources plc Clive Carver, Chairman Colin Hutchinson, CEO	0207 251 4905
Stockdale Securities Limited, Nominated Adviser Alastair Stratton Richard Johnson Edward Thomas	0207 601 6100
IFC Advisory Ltd, Financial PR and IR                Graham Herring Tim Metcalfe Heather Armstrong	0203 053 8671

This information is provided by RNS

The company news service from the London Stock Exchange

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