Ascent Resources PLC shares were up on Friday, after a tribunal rejected the Slovenian government’s challenge against a €656.5 million claim by the company.

Ascent is an oil and gas exploration company focused on European onshore projects. Shares in the company were up 15% at 2.70 pence each in London on Friday afternoon.

In 2022, the company filed a claim against the Republic of Slovenia, alleging that its investments had been ‘unfairly targeted and expropriated by Slovenia’.

Ascent said that a 2020 change to the country’s mining laws, which prohibited the exploration of hydrocarbons using hydraulic stimulation, also known as fracking, had ‘destroyed the value of the company’s investments in the Slovenian energy sector’.

Ascent was able to make a claim against Slovenia through the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty, which enables companies to take legal action against countries whose energy policies threaten their investments.

In July, following a damages assessment, the company said it was seeking €656.5 million from the Slovenian government.

On Friday, after a challenge over the adequacy of Ascent’s claim costs coverage, including its after-the-event insurance, a tribunal rejected the government’s application for security for costs.

As a result, Ascent said that the claim is expected to ‘advance without delay’.

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