Ascent Resources PLC Update on former JV Partner’s Insolvency Process

RNS Number : 5737P

Ascent Resources PLC

11 December 2024

 

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.

11 December 2024

Ascent Resources plc

("Ascent" or the "Company")

Update on former JV Partner's Insolvency Process &
Confirmation of Court Approved List of Tested Claims

Ascent Resources Plc (LON: AST) is pleased to update shareholders that the Company's lawyers have been notified that the relevant insolvency Court in Slovenia has ruled on the submitted creditor claims in the insolvency proceedings of the Company's former Slovenian joint venture partner, Geoenergo d.o.o. ("Geoenergo"). Based on this Court ruling, the insolvency administrator has prepared the final list of tested claims, which is expected to be publicly announced by the administrator as soon as possible. As announced by the Company on 18 April 2024, the Company submitted Claims in the insolvency proceedings relating to both monies held on account by Geoenergo on behalf of Ascent Slovenia Limited ("ASL") as well as revenues owed by Geoenergo to ASL pursuant to the binding interim arbitration decision (as announced 25 October 2023) as well as a claim relating to ASL's share of JV property.

The Company confirms that the Court has approved ASL's conditional claim of €3,038,944 relating to ASL's share in JV plant and property subject to ASL signing a handover memo, which ASL intends to complete shortly. Furthermore, the Court has approved €2,699,123 (as proposed by the Administrator) out of the total €7,780,501 claimed by the Company in revenues owed from production above the baseline profile (as ASL was confirmed it was owed in the binding interim arbitration decision in October 2023). The Company is confident that the Administrator's calculation which includes a deduction of gross area production costs against ASL's total claim amount is manifestly wrong and ASL will now submit a claim with the relevant Court within the 30 day window following the administrator's public announcement of the court ruling and expects to resume the domestic arbitration proceedings (which were suspended when Geoenergo went into insolvency) to get a binding decision on quantum of the amounts due to ASL, following which the Company expects the disputed balance of €5,081,378 to also be recognised as well as an award on costs, following which the Court will accept ASL's claim for payment of these sums totalling a further €139,454.

The Court has also approved ASL's claim for €51,941.17 related to funds pre-paid in relation to JV abandonment liabilities, which ASL deposited in the insolvent debtor's account but which were not transferred to the state rehabilitation fund, EKO sklad. Furthermore, ASL remains confident that it is entitled to an additional €62,014.71, which it paid to Geoenergo to be transferred to EKO sklad and which Geoenergo subsequently transferred to the EKO Fund in its own name and for its own account. ASL intends to pursue also this claim in the relevant Court.

The relevant insolvency Court has further upheld ASL's objection to recognising the Republic of Slovenia's claim for full concession area abandonment liabilities of €2,405,719 as a valid creditor claim against the insolvency estate. The court agreed with ASL's position that these liabilities were not due at the time Geoenergo entered insolvency.

The Court has approved a total of €3,319,397 of valid claims, of which ASL currently has approved valid claims of €2,751,064, representing approximately 82% of the insolvency creditors' claims on the estate. Furthermore the Company has a conditional claim over the moveable plant and property of €3,038,944, subject to signing the handover memo which ASL intends to do shortly. The Company has been informed that the cash on account for the benefit of the insolvency estate towards the end of September was €1,660,982 and the Company understands that production of hydrocarbons is a continuing activity within the Petisovci concession area. ASL's recovery of amounts claimed remains subject to the continuing insolvency proceedings and the final cash realisable value of the insolvency estate, which may be less than the full amounts owed to approved creditors. Further updates will be announced as required.

 

Enquiries:

Ascent Resources plc Andrew Dennan, CEO	Via Vigo Consulting
Zeus, Nominated Adviser & Broker James Joyce / Sarah Mather	0203 829 5000
Novum Securities, Joint Broker John Belliss	0207 399 9400

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 

END

 

 

UPDGPGGGPUPCGMU