Ascent Resources reports progress in JV partner insolvency claims

(Sharecast News) - Ascent Resources updated the market on the insolvency proceedings of its former Slovenian joint venture partner Geoenergo on Wednesday, confirming progress in its claims to recover funds. The AIM-traded firm said a Slovenian insolvency court had approved multiple claims submitted by Ascent's subsidiary, Ascent Slovenia (ASL), though some disputes remained unresolved.

It said the court had approved ASL's conditional claim of €3.04m for its share of joint venture plant and property, contingent on signing a handover memorandum, which ASL planned to finalise shortly.

Additionally, the court approved €2.7m of a €7.78m claim for revenue owed to ASL from production above a baseline profile, previously recognised in an interim arbitration decision in October 2023.

ASL disputed the deductions applied to that claim, and intended to resume arbitration proceedings to secure the remaining €5.08m and associated costs.

The court also recognised a €51,941 claim related to funds prepaid by ASL for joint venture abandonment liabilities that were not transferred to the state rehabilitation fund, EKO Sklad.

ASL was planning to pursue an additional €62,014 claim for funds it transferred to Geoenergo, which were subsequently paid to the EKO fund under Geoenergo's name.

In a favourable ruling, the court upheld ASL's objection to a €2.41m claim by the Republic of Slovenia for concession area abandonment liabilities, determining that was not due at the time of Geoenergo's insolvency.

In total, the court approved €3.32m of valid claims against Geoenergo's estate, of which €2.75m was attributable to ASL, representing about 82% of the estate's recognised creditor claims.

Cash on account for the estate at the end of September stood at €1.66m, with hydrocarbon production in the Petišovci concession continuing.

ASL's recovery remained dependent on the final value of the insolvency estate and ongoing proceedings.

Ascent said it was continuing to pursue its remaining claims through arbitration and court processes, and would provide further updates as developments unfolded.

At 1214 GMT, shares in Ascent Resources were up 3.23% at 1.6p.

Reporting by Josh White for Sharecast.com.