LONDON (ShareCast) - (Sharecast News) - Ascent Resources updated the market on the status of its IPPC permit application on Tuesday, reporting that since August it had received repeated private assurances from senior officials at the Slovenian Environment Agency - the lead regulator in the award of permits - that the issue of the long-awaited permit had been approved and would be confirmed imminently.
The AIM-traded firm reported that over the weekend, it was reported in local press that the new environment minister Jure Leben had decided to make further enquiries into the permit.

It said that, despite repeated efforts on its part, it had been unable to get any meaningful comment from either ARSO or the minister.

Over the past five years, Ascent said the IPPC Permit application had been subject to detailed scrutiny by ARSO, the previous Environment Minister, the Slovenian courts and by Environmental NGOs during the public consultation process.

It claimed the proposed facility was not a complex installation, explaining that there were many similar facilities functioning in Europe without controversy.

The potential future gas production from Petišovci could create significant energy independence for Slovenia, the board reported, which currently imported 99.9% of its gas production, much of it sourced from Russia.

It said it would also enable the country to transition away from coal and nuclear as its prime source of domestic electricity generation, thereby reducing carbon dioxide emissions and long-term environmental risk.

Ascent said it had over the past 11 years invested around €50m in Slovenia to allow Slovenians to produce their own gas.

As the permit had already been subject to years of detailed scrutiny, with the benefits of the project to the country described by the board as "undeniable", it said it could only conclude that the delaying tactics of ARSO and the decision by the new Environment Minister seemed to be at odds with what was best for the Slovenia.

The board said the inability of investors in Slovenia to rely on bureaucratic processes or the rule of law made any investment in the country by foreign companies extremely high risk.

In progressing its attempts to get the permits awarded, Ascent said it had become aware of similar cases in other industries, where overseas investors were suffering similar.

"While we have the greatest respect for the Slovenian people, who we believe deserve better from their officials and their politicians who continue to profess the need for further foreign investment, we have regretfully reached the end of the line in waiting patiently for the Slovenian authorities to do the right thing," the Ascent board said in its statement.

It said it had become "clear" that any legal action in Slovenia would be a waste of shareholder money, and it had therefore resolved to explore commencing proceedings against the Environment Agency, the Environmental Minister and the state of Slovenia directly in EU courts.

"I am deeply disappointed that we have been let down once again by the Slovenian system given the private assurances received," said Ascent Resources chief executive officer Colin Hutchinson.

"I had hoped that the award of the permit would have marked the beginning of the next phase of the project.

"Instead we are left once again reviewing our legal options to hold those responsible for the operation of the permitting system to account."

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