Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
Ascent Resources plc
("Ascent" or "the Company")
IPPC Permit & Operational update
The Board of Ascent is pleased to announce that it has been informed by the Environment Agency in Slovenia that the partners in the Petišovci project will not be required to carry out a full environmental impact assessment ("EIA") prior to the award of an IPPC Permit ("the Permit") to install a new processing facility at Petišovci.
Background
In May 2016, the Administrative Court ruled that despite there being no valid objections to the granting of the Permit based on environmental issues the court believed the process adopted by the Government Agency in reviewing the Permit application was inconsistent with EU regulations.
Accordingly, the partners were invited to recommence the Permit application from the start of the process by carrying out a preliminary screening exercise, the purpose of which was to determine whether a full EIA is needed before awarding the Permit.
Throughout this process the Company has maintained that the original decision was flawed and the additional process of no value.
Next steps following the decision of the Environmental Agency
An objection to this decision has been lodged by the one NGO who have consistently appealed against the construction of the processing facility at each stage of the process. The Environment Agency and the government departments have consistently ruled in favour of the development. The Administrative Court decision which revoked the Permit was made on procedural grounds and did not endorse any of the issues raised by the NGO. The objections raised by the NGO in their latest appeal have been consistently found to be without merit.
The Company is firmly of the view that the new processing facility, which will allow Slovenian gas to be treated in Slovenia and sold into the Slovenian National Grid system, is clearly in the best interests of the country and therefore the actions of this NGO are damaging the national interest.
The Board are encouraged by the efforts made by the authorities to address the problems created by the unexpected decision of the Administrative Court in May 2016. If the Environment Agency had requested a full EIA it is likely that the final award of the Permit would have been delayed for at least an additional year, but this decision now means the Company and its partners can look forward to the Permit being fully awarded sometime in 2017.
Operational Update
Our plans to export gas to Croatia in 2017 are not reliant on the award of the Permit.
We recently announced receipt of the official notification concerning the recertification of the pipeline to the Croatian border.
Work continues to prepare the two wells from which the gas will be supplied and to tie them into the existing pipeline network.
We continue to look forward to commencing commercial supply of our gas to Croatia in early 2017.
Colin Hutchinson, CEO, commented:
"I am pleased with this decision which paves the way for an early reinstatement of the Permit; this not only provides the long-term solution for the field but also underlines the support which the project enjoys amongst its partners and the authorities."
Enquiries:
Ascent Resources plc Clive Carver, Chairman Colin Hutchinson, CEO |
0207 251 4905 |
Stockdale Securities Limited, Nominated Adviser and Broker Richard Johnson Andy Crossley Ed Thomas |
0207 601 6100 |
Northland Capital Partners Limited, Broker Tom Price John Howes Abigail Wayne |
0203 861 6625 |
IFC Advisory Ltd, Financial PR and IR Graham Herring Tim Metcalfe Heather Armstrong |
0203 053 8671 |
