11th Mar 2019 10:14
LONDON (Alliance News) - Ascent Resources PLC on Monday reported a steep fall in both its production levels and revenue for the month of February.
Furthermore, Ascent is preparing to take legal action against the Slovenian Environment Agency, or ARSO, with regards to permitting to re-stimulate the currently producing Pg-10 and Pg-11A wells at the Petisovci project.
Shares in the company were trading down 3.1% at 0.31 pence each. Earlier on Monday they traded as low as 0.24p.
Total production for February was 311,443 cubic metres, an average of 71 barrels of oil equivalent per day, with revenue for the month at EUR44,513. In January, total production was 412,763 cubic metres or 81 boepd, and revenue amounted to EUR70,379.
Ascent added on Friday ARSO issued a decision ordering an environmental impact assessment to be undertaken for a plan to re-stimulate the Pg-10 and Pg-11A wells.
The company plans to appeal the decision, which it described as "contradictory".
The key ground for appeal is the fact all six government agencies which ARSO is required to consult as part of the screening assessment process concluded no assessment was needed.
Ascent Resources added ARSO is bound to follow the findings of the six agencies since it has not undertaken any independent assessment of the likely impacts of the environment.
"The company continues to work with legal experts in Slovenia and London to prepare claims for damages as a result of the numerous and continued failures and delays by ARSO and the Ministry to comply with Slovenian and EU law. This decision is in direct contradiction of expert opinions procured by ARSO and provides further evidence in support of any potential claim for damages," Ascent said.
Ascent has had significant problems in Slovenia, saying in January it was to move its focus away from the country.
Ascent has been trying to get a pollution prevention and control permit for Petisovci for five years. The issue came to a head at the end of October, when Ascent decided to take legal action against Slovenia at the EU.
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