Ascent Suffers Further Setback in Slovenia

Slovenia's administrative court has ruled that Ascent Resources will need an environmental impact assessment (EIA) to re-stimulate the PG-10 and PG-11A wells at the Petisovci tight gas field, the London-listed producer said on June 2. The court rejected Ascent's appeal against the Slovenian environmental agency ARSO's decision that the assessment was required.

"The company is in the process of beginning preparations for submission of an EIA, alongside the stimulation and field development planning which was initiated recently," Ascent said. "The court decision, along with earlier action by the state, will constitute important evidence to support the claim the company intends to bring against the Republic of Slovenia under the Energy Charter Treaty."

Ascent has spent around €50mn over the last 11 years on developing in Petisovci, but it is struggling to arrest production decline after being denied permits from Slovenian authorities last year to re-stimulate its two wells.  However, the company said in May it was hopeful of receiving the permits following changes introduced by the new Slovenian government.