Page 12 - Euroil Week 35 2019

EurOil PROJECTS & COMPANIES EurOil
Providence gives Chinese partner final warning over funding
UK
Apec has failed repeated deadlines to make a $10mn payment.
LONDON-LISTED Providence Resources has threatened to take legal action against its Chinese partner Apec Energy over its repeated delay in providing agreed nancing.
e explorer has given Apec until close of play on September 9 to transfer a $10mn cash payment, agreed as part of a deal that gave Apec a 50% stake in standard exploration licence 1/11 o Ireland. e licence holds the Barryroe oil eld.
Providence has extended the deadline for the funds’ arrival on almost a weekly basis over the last few months. It now appears to have run out of patience, however.
“In granting Apec a further week’s exten- sion to September 9 2019, the company has also issued written notice to Apec that, should the Apec loan amount not be received by the close of business on that date, the company reserves the right to end exclusivity, while also consider- ing all legal remedies available to it against Apec for contract non-performance, including the
re-assignment of equity in SEL 1/11,” Province said in a statement on September 3.
In previous updates, Providence downplayed its concern about the funding, blaming it on banking delays. It told investors it had received assurance from HSBC that the funds were await- ing clearance.
e $10mn will be used to pay for front-end and pre-drill costs at SEL 1/11, as well as a survey of the Barryroe seabed. In the latter case, Prov- idence has already agreed payment for mobilis- ing a vessel, which is due to start operations this week.
e company said it had also begun review- ing alternative means of nancing, should the Apec funds not appear on time.
Province operates SEL 1/11 with a 40% stake, while Apec has 50% and another Irish operator, Lansdowne Oil & Gas, has 10%. e farm-in deal was struck with Apec in March last year, under which the Chinese rm agreed to cover 50% of drilling costs.™
Ascent Resources reportedly plans to sue Slovenia for €50mn
SLOVENIA
Ascent has struggled
for years with red tape and permitting delays in Slovenia.
OIL and gas exploration company Ascent Resources is preparing to sue Slovenia for €50mn, reported specialist news portal Litiga- tion Finance Journal.
According to the report, Ascent will ask for €50mn in damages due to the delays it faced in obtaining a permit to develop the Petišovci gas eld in northeast Slovenia.
On August 27, the company said it was pre- paring “legal claims for damages against the persistent delays in permitting relating to the further development of the tight gas reservoirs in the Petišovci gas eld.”
“Ascent and our partners continue to pur- sue an appeal against the decision of the envi- ronment ministry in Slovenia requiring an [environmental impact assessment] EIA for the re-stimulation of our producing wells,” com- mented CEO John Buggenhagen. “Further, we continue to prepare claims for damages against the Republic of Slovenia for breaches of EU law in relation to their decision, including the sig- ni cantdelaysinthedecision-makingprocess.”
The statement also outlined progress at
Petišovci, where Ascent and its partners are exploring various options that would not require hydraulic stimulation, as well as evaluating other potential drilling opportunities. Ascent and concession holder Geoenergo are also currently working on documentation for the extension of the Petisovci concession beyond 2022. With the new management and board now in place, cost reduction measures to reduce net monthly cash out ow by over 50% are currently being nalised.
“I am excited by the progress we have made in such a short time. We have implemented a revised operating structure to reduce our costs by 50% while continuing to focus on maintain- ing the value of Ascent’s interests in the Petišovci gas eld and larger concession area. Irrespective of our plans to prepare legal claims following the delays in receiving permits, we will continue to work with our partners and advisers to further streamline the business and implement our plan to re-focus Ascent towards growing our reserves andproductionbaseinSloveniaandtheregion,” said Buggenhagen. ™
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w w w . N E W S B A S E . c o m Week 35 05•September•2019