Final Results-ASCENT RESOURCES PLC

Final Results-ASCENT RESOURCES PLC

Final Results

Ascent Resources Plc (LON: AST), the European and Latin American focused natural resources company, announces its final results for the year ended 31 December 2022.

Highlights:

·    Partially solved partner disputes in Slovenia to be able to recognise net revenue of €651k for hydrocarbons produced and sold in 2020 and 2021

·    Initiated Slovenian arbitration proceedings to seek payment of agreed but unpaid hydrocarbon revenues for 2022 as well as to settle difference in interpretation of the JV contract relating to production above the baseline whilst Ascent is in a preferential cost recovery mode (i.e. until it has earned its investment back)

·    Secured funding from specialist litigation and arbitration specialists Enyo Law LLP via a damages-based agreement, to pursue the Company's Energy Charter Treaty damages claim, initially estimated to be in excess of €500 million, against the Republic of Slovenia over their breaches which have destroyed the value of the Company's investment in country

Corporate

·    Production of 1.16 million scm of gas and 37,855 litres of condensate in 2022 from PG-10 and PG-11A wells

·    Focused ESG Metals growth strategy on Latin and Hispanic America and advanced business development activities in Peru and Chile, which are both countries with a long history in mining and mineral processing positioning the Company to execute on its maiden metals deal shortly

·    Raised £1.2 million in new equity by way of subscription and placing

Post Balance Sheet Events

·    Constitution of the Tribunal under the ICSID rules, in the Company's €500+ million ECT damages claim against the Republic of Slovenia and first Tribunal meeting held in April 2023

·    Resolved partner dispute in Slovenia and received €1.7 million relating to production from January 2022 through to February 2023 and recognised €1.4 million of production related costs which corresponds to all outstanding service provider costs claimed since 2019 through to February 2023, with the amount being paid being a discount of approximately 30% to the amounts claimed

·    Agreement to amend the monthly fixed fee to the Slovenian service provider from €40,000 per month to the higher of €20,000 per month or 35% of Ascent Slovenia Limited's entitlement to monthly proceeds from the PG-10 and PG-11A wells

·    Indicative proposal to acquire Amur Minerals Limited, with the intention of combing their remaining available cash resource with Ascent's advanced business development inventory in Peru and Chile

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