Slovenia court rips up permit for Ascent Resources project

European oil and gas exploration and production company Ascent Resources revealed a disappointing development on the decision from the Administrative Court of Slovenia over its IPCC environmental permit application.

The AIM-traded firm said the contractor to its joint venture that initially filed the IPCC application, Petrol Geotherm, had been informed of the court’s decision to withdraw the permit which was granted in June last year.

It said the court made the decision based on the fact that the law changed in the time between the application being submitted in June 2014 and it being granted in 2015, despite the fact the new law explicitly states that any applications submitted previously should be pursued under the old regulations.

Ascent said the decision was not based on any objectives to its Petišovci project, but rather the permit application process, and was of the view that the decision of the court was directly contrary to Slovenian law.

"This decision is contrary to all legal opinions received by the company and the explicit provisions of the prevailing law,” said Ascent Resources chairman Clive Carver.

“Additionally, we believe it goes against common sense and the overriding interests of the Slovenian state.

“Despite this unexpected ruling we remain confident that over time the clear national interests of the Slovenian economy of having its own reliable supply of gas will prevail and that the laws of the land will be followed,” he explained.

The matter was referred back to the Slovenian Environment Agency to decide how to proceed. If the court’s decision was accepted by the agency, Ascent said it would consider other legal remedies with its partners.

“Thankfully our preferred option to achieve first gas does not require the issue of the IPPC permit and remains on track,” Carver confirmed.