6th May 2016 12:12
LONDON (Alliance News) - Ascent Resources PLC on Friday said a Slovenian court has withdrawn the IPPC permit covering the Petisovci oil and gas project in the country in a decision the company said is "contrary to Slovenian law".
Petro Geoterm, the contractor on Ascent's original joint venture on the project and the entity which filed the original IPPC environmental application, has been informed the Administrative Court in Slovenia has withdrawn the permit granted by the Slovenian Environment Agency in June 2015.
The reason given by the court is that, after the original application was made in June 2014, the relevant law was changed and the process which followed for the IPPC permit was not followed.
This, Ascent said, is despite a new law which explicitly states any applications submitted prior to the relevant date for the new laws should be pursued exclusively under the previous rules.
"In summary the decision is not based on any objections to the Petisovci 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," Ascent said in a statement.
The matter has been referred back to the Slovenian Environment Agency and Ascent said it hopes the agency will continue to "display the sound judgement they have shown so far in this process and challenges the decision of the Administrative Court."
Should the decision not be reversed, it could lead to an "unnecessary delay" on Ascent's longer term plans, the company said, though it will not impact Ascent's preferred route to first gas and revenue through outsourcing to a neighbouring country for treatment.
"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," said Clive Carver, Ascent's chairman.
"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," he added.
Ascent shares plunged on the news, down 35% to 1.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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