Ascent Warns Slovenia of EU Court Action

AIM-listed Ascent Resources says it plans to take Slovenia to an EU court over its refusal to allow it to build a gas process plant.

In early August, the company had said it was hopeful that permits needed for the small plant would be issued in final form by October. But now it cites press reports this weekend that Slovenia’s new environment minister Jure Leben has decided to make further enquiries into the permit.  The company first applied for a permit in 2014.

Stating that legal action in Slovenia would be “a waste of shareholders money”, Ascent said it has “therefore resolved to explore commencing proceedings against the environment agency (Arso), the environmental minister and the state of Slovenia directly in the EU courts.” Lack of a plant obliges Ascent to sell its gas unprocessed into neighbouring Croatia; it also limits its potential to expand output.

CEO Colin Hutchinson said he was “deeply disappointed that we have been let down once again by the Slovenian system given the private assurances received.” Potential future gas production from Petisovci could create significant energy independence for Slovenia which imports 99.9% of its gas production, much of it from Russia, said Ascent adding that it had invested €50mn ($57mn) over 11 years.