Shares in Ascent Resources saw a significant increase of 27% following a recent arbitration tribunal decision. The decision resolves a dispute with the company's joint-venture partner, allowing its Slovenian unit to receive revenue from five additional wells.
At 1136 GMT, shares were trading at 3.75 pence, a rise of 0.45 pence. Earlier in the session, the shares had reached 4.18 pence.
The London-listed energy company announced on Wednesday that the tribunal has issued a binding interim decision, affirming Ascent Slovenia's right to a 90% share of the hydrocarbons produced above the baseline production profile. This entitlement applies to all wells within the concession area until Ascent Slovenia has recovered its investment, which exceeds $50 million.
Consequently, the Slovenian subsidiary will now have revenue generated from a total of seven wells, as opposed to the previous two.
In June, Ascent Slovenia underwent a hearing regarding a disagreement with Geoenergo, its Slovenian joint-venture partner. The dispute revolved around differing interpretations of the 2013 agreement.
The next and final stage of the arbitration process is expected to conclude by April 11 next year.
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