Ascent Resources PLC Operational & IPPC permit update (1812J)
December 16 2015 - 2:00AM
UK Regulatory
TIDMAST
RNS Number : 1812J
Ascent Resources PLC
16 December 2015
Ascent Resources plc
("Ascent" or "the Company")
Operational & IPPC permit update
Operational update
As previously announced, the Company has been in discussions
with new industry partners, to explore alternative routes that
would ultimately enable the Company to generate income from the
sale of gas from the Petišovci field in 2016, without the need to
construct a new gas treatment works. The Company believes that the
most viable route will be through using a combination of new and
existing pipelines to contract out the processing of the gas from
the Petišovci field.
Initial technical and legal due diligence is progressing
satisfactorily and discussions remain in an advanced stage. The
Company is working to conclude a binding agreement during Q1 2016,
with a view to producing gas by Q3 2016.
Further announcements in this regard will be made in due
course.
IPPC permit
It remains a medium term objective to construct a new gas
treatment works on the Petišovci field. However, before
construction work on this facility can commence an Integrated
Pollution Prevention and Control Permit ("Permit") is required.
The Permit was first applied for in June 2014. This was
approved, subject to public consultation in December 2014 and
following the consultation process, the Permit was provisionally
awarded in June 2015. Two organisations subsequently appealed to
the Environment Ministry but these were rejected in November
2015.
One of these organisations has accepted this decision but the
remaining organisation has decided to appeal through the
courts.
The appeal to the Slovenian courts is the final step in the
determination of the IPPC permit. Guidelines suggest that the
process should be completed within six to nine months but in
practice it is not possible to estimate with certainty how long the
process could last. As far as the Company is aware this latest and
solitary appeal contains no further new information. Based on legal
advice and the consistent rulings of the various regulatory bodies
concerned to date, the Board of Ascent remain confident that the
Permit will be awarded in 2016.
As noted above, the appeal should not affect the short-term
prospects of the Petišovci project and indeed is expected to
improve the Company's cash position as the significant capital
expenditure required to construct the new treatment works will now
be deferred until at least Q4 2016, by which time the Board expects
to be generating revenue through the sale of gas via the
alternative route.
Clive Carver, Chairman of Ascent commented: "We are pleased with
the progress that is being made towards our goal of producing gas
from the Petišovci field by Q3 2016 and generating income. Whilst
the final appeal will delay the granting of the Permit and the
construction of the gas treatment works we are confident that the
alternative route to market represents the better option for the
Company, at present."
Enquiries:
Ascent Resources plc
Clive Carver, Chairman
Colin Hutchinson, Interim
CEO 0207 251 4905
finnCap Limited, Nominated
Adviser
Christopher Raggett
Emily Watts 0207 220 0500
IFC Advisory Ltd, Financial
PR and IR
Graham Herring
Tim Metcalfe
Heather Armstrong 0203 053 8671
This information is provided by RNS
The company news service from the London Stock Exchange
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