Ascent Resources PLC on Tuesday said it has agreed to settle a portion of its revenue recognition claim against Geoenergo, and to settle its dispute with the joint venture service provider Petrol Geo.
The Latin America and Europe-focused energy and natural resources company said it reached a positive resolution in Ascent Slovenia Ltd’s dispute, settling Petrol Geo’s claims over disputed and rejected invoices claimed from 2019 to February 2023.
Ascent said the claims totalled €2.1 million, and were settled for €1.4 million, at a 30% discount to face value.
The company also renegotiated the field operating service provider’s fixed fee from €44,000 per month, to whichever is the higher figure of either €20,000 per month, or 35% of ASL’s share of hydrocarbons produced from the PG-10 and PG-11A wells. Ascent said the previous fee was unsustainable when gas prices and production levels were lower.
Regarding its revenue recognition claim against Geoenergo for the non-payment of hydrocarbons revenue owed to ASL from January 2022 to February 2023, totally €1.7 million, Ascent said Geoenergo has agreed to pay the figure in full.
Accounting for the payment to Petrol Geo, the settlement means that ASL gains further net revenue of £288,689.
The firm said ASL continues to pursue its arbitration claim against Geoenergo ‘in relation to the parties’ different interpretations of the application of the baseline production profile and the number of wells ASL is entitled to receive a portion of revenues from whilst it is in a preferential cost recovery mode’.
The final hearing is set for July 2023.
Chief Executive Officer Andrew Dennan said: ‘We are pleased to continue to make progress in achieving resolutions to our various disputes. Whilst there is still a way to go, resolving the matter with the service provider has resulted in a significant retrospective cost saving alongside a re-profiled and more sustainable ongoing project cost base for our Slovenian asset.’
Ascent Resources shares rose 6.6% to 3.25 pence each in London on Tuesday afternoon.
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