Annual Report and Financial Statements 2024 Company Number: 05239285 Ascent Resources plc Annual Report and Financial Statements 2024 | 1 Ascent Resources plc (“Ascent” or the “Company”) Ascent Resources Plc is a US Onshore gas and helium company listed on AIM Contents Company Information.......................................................................................................................................... 2 Chief Executive Officer’s Statement.....................................................................................................................3 Strategic Report................................................................................................................................................... 7 Summary of Group Net Oil and Gas Reserves....................................................................................................19 Directors’ Report................................................................................................................................................ 20 Board of Directors.............................................................................................................................................. 27 Corporate Governance Report...........................................................................................................................28 Audit Committee Report....................................................................................................................................36 Remuneration Committee Report......................................................................................................................38 Statement of Directors Responsibilities.............................................................................................................42 Independent Auditors Report............................................................................................................................43 Consolidated Statement of Comprehensive Income.........................................................................................49 Consolidated Statement of Financial Position...................................................................................................50 Company Statement of Financial Position.........................................................................................................51 Consolidated Statement of Changes in Equity...................................................................................................52 Company Statement of Changes in Equity.........................................................................................................53 Consolidated Cash Flow Statement...................................................................................................................54 Company Cash Flow Statement.........................................................................................................................55 Notes to the Accounts........................................................................................................................................ 56 Ascent Resources plc Annual Report and Financial Statements 2024 | 2 Company Information Company’s registered number 05239285 Directors Andrew Dennan David Bullion Jean-Michel Doublet Edouard Etienvre Company Secretary AMBA Secretaries Limited Registered Office 5 New Street Square London EC4A 3TW Nominated Advisor & Joint Broker Zeus Capital Limited 125 Old Broad Street London EC2N 1AR Joint Broker Novum Securities Limited 8-10 Grosvenor Gardens London SW1W 0DH Joint Broker Fortified Securities 162 Buckingham Palace Road London SW1W 9TR Joint Broker Shard Capital Partners LLP 51 Lime St London EC3M 7DQ Independent Auditors PKF Littlejohn LLP 15 Westferry Circus London E14 4HD Solicitors Fieldfisher LLP Riverbank House 2 Swan Lane London EC4R 3TT Bankers Barclays Corporate Banking 1 Churchill Place London E14 5HP Share Registry Computershare Investors Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ PR & IR Vigo Consulting Sackville House 40 Piccadilly London W1J 0DR Ascent Resources plc Annual Report and Financial Statements 2024 | 3 Chief Executive Officer’s Statement Dear Shareholders 2024 has been a year of significant transformation for Ascent Resources Plc, a period where we boldly redefined our identity and set a course for a future rich with opportunity. 2024 saw a renewal of our Board of Directors, with the former chairman and non-executive directors stepping down and two new non-executive directors, David Bullion and Edouard Etienvre being appointed to the Board. This has been a year of significant milestones, from our ambitious expansion into the U.S. onshore gas and helium sector alongside continued pursuit of resolution of our Slovenian legacy and a distribution to shareholders of a ring-fenced percentage of the net proceeds to be received in the event of a positive Energy Charter Treaty claim outcome, and I am eager to share the full scope of our journey with you. It has also has been a year of extraordinary progress and reinvention for Ascent Resources Plc, a time when we turned strategic vision into concrete achievements and laid a robust foundation for future success. Building on the resilience and stability we established in 2023, where we defended our interests in Slovenia, and secured our financial footing, we have now executed a bold pivot to the Americas, positioning ourselves as a dynamic player in the U.S. onshore gas and helium sector. This has been a year of action, from groundbreaking investments to the resolution of legacy challenges. U.S. Onshore Oil and Gas & Helium Strategy Our foray into the U.S. market has been the defining narrative of 2024, marking a strategic shift toward revenue-generating assets in a stable and high-potential jurisdiction. In April, we announced our maiden investment into GNG Partners LLC by participating in a US$1 million convertible loan that granted us exposure to the Lisbon Valley gas and helium processing facility in Utah. This 60 MMscfd name plate plant, acquired out of Chapter 11 bankruptcy for an effective consideration of US$11.5 million plus US$2 million in cure costs, is a linchpin in the Paradox Basin—a region celebrated for its helium-rich gas reserves, with helium concentrations reaching up to 7-8% in the region. The Lisbon Valley gas processing plant includes 1.1 MMcfd of helium processing capacity which includes a 550 Mcfd helium liquefier, a 45 MMcfd cryogenic plant, and a 10 MBpd fractionation train, purpose-built to handle the basin’s unique gas composition, high in CO₂, H₂S, N₂, and helium. By May, the plant was operational, processing gas with steady performance throughout the remainder of 2024 before being shut in the beginning of 2025 for some upgrades and identified plant repair works, with the plant expected to be back online towards the end of Q2, following which GNG expect to turn their focus to recommissioning its liquefaction unit, dormant since 2013 when liquified helium prices languished at c.US$60/Mcf. With current prices soaring to US$750-1,450/Mcf, this upgrade—targeted for completion by 2025 year-end—will enable GNG to produce and sell liquefied helium, tapping into premium markets and driving significant revenue growth in 2026 and beyond. GNG have also filed their Monitoring, Reporting and Verification study (“MRV”) to the Environmental Protection Agency in order to qualify for the US 45Q carbon capture, utilization and storage projects which is expected to be approved in the Summer of 2025 and will balance the GNG offering across three core verticals i) natural gas processing; ii) helium processing and liquefaction; and iii) carbon capture and sequestration. Our U.S. ambitions expanded further in December, ahead of the year end, with a landmark acquisition of a 49% non-operated direct interest in producing and prospective oil and gas with helium leases operated by American Helium LLC: 119,000 acres of helium-rich leases in Utah and Colorado, secured for US$2 million through a combination of US$250,000 in cash and US$1.75 million satisfied by the issuance of 27.65 million new shares at an issue price of 5 pence per new share (see Note 10 to the accounts below) which were admitted to AIM in January 2025. This deal, underpinned by a US$1 million equity raise in July at a 43% premium to the closing share price, represents a strategic leap into upstream development. The acreage, Ascent Resources plc Annual Report and Financial Statements 2024 | 4 with helium concentrations which have been measured in certain leases at 1%, integrates seamlessly with our midstream operations at Lisbon Valley, creating a cohesive portfolio that spans processing and production. Our team is already mobilising to explore this asset’s potential, with plans to enhance its value through targeted development in the coming years. GNG estimates that Lisbon Valley alone could account for 3.4% of U.S. liquid helium production (or 1.7% globally), and with this upstream expansion, we are positioning Ascent to become a significant contributor to this high-demand market. The American Helium operated oil and gas leases in Utah and Colorado include a portfolio which has proved (1P) reserves (inclusive of PDP, PDNP and PUD reserves) net to Ascent’s 49% working interest of 9.1 Bcf of natural gas (which the operator has tested helium at up to 1% in certain wells); 1.396 MMbbl of oil and condensates; and 1.17 MMbbl of natural gas liquids (APN Energy Consultants LLC, Report on Reserves dated 1 April 2024 prepared using the standard petroleum engineering practices in conformity with the SPE Petroleum resources Management System guidelines). The portfolio of leases has significant behind pipe upside as well as potential step-out and exploration upside within the acreage, including opportunities to exploit high helium-bearing zones. The acreage is in the helium rich Paradox Basin and has up to 1% helium contained within the producible natural gas streams, which is expected to be monetised through synergistic tie-back and processing at the GNG Lisbon gas processing plant. The acreage also benefits from having existing infrastructure in place and an experienced operator which is principally based out of Houston, Texas as well as in the field. Production is currently restricted to one local industrial gas buyer whilst the GNG Lisbon Plant upgrades and maintenance program is completed, following which the leases are expected to resume full production at around 3 MMscfd (gross daily production to American Helium and Ascent as partners proportional to their working interests). These investments and acquisitions relating to our advancing US strategy aligns with our goal of building a diversified, cash-generative business, providing a pipeline of projects that could accelerate our growth in 2025 and beyond. Together, these initiatives reflect our commitment to seizing opportunities in burgeoning markets, leveraging our operational capabilities to deliver value in a region with a robust framework for natural resource investment. Post period under review, as set out in Future Developments section of the Director’s Report (below), the company made a conditional acquisition of a 10% direct interest in oil and gas leases operated by ARB Energy Utah,LLC along with securing 50% incremental production rights by investing in the installation of artificial lift technologies and also secured a 49% interest in leases operated by Locin Oil Corporation. These leases are consistent with the Company’s strategy to pursue a growth strategy focused on existing proven and producing reserves with significant prospective upside onshore U.S. Legacy Slovenian Investment & ECT Damages Claim While our future lies in the US onshore gas and helium, 2024 was also about resolving our past in Slovenia with determination and strategic clarity. The year began with a significant development: on 8 January, Geoenergo d.o.o., our Slovenian joint venture partner, filed for voluntary insolvency, a move that followed our 2023 favourable arbitration interim award affirming our interpretation of the RJOA and the validity of our claims for a portion of the revenue from producing wells on the concession area other than PG-10 and PG-11a which the Company calculated to be an amount of c. €8 million relating to unpaid production revenues from October 2019 to December 2023 plus statutory interest. Upon their appointment on 19 January 2024, the administrator unilaterally terminated the Restated Joint Operating Agreement (RJOA), a decision ratified by the insolvency court, leading to the concession’s subsequent expiry on 19 April 2024. This marked the end of our operational tenure in Slovenia, a closure we met with proactive measures to safeguard our interests. Following the appointment of the administrator, the Company filed an €11 million claim in the insolvency proceedings, comprising the €8 million owed for production revenues plus interest and a conditional claim of €3 million for the value of Ascent Slovenia Limited’s (ASL) (100% owned Company subsidiary) share of joint venture assets which are caught up in the insolvency process. While Geoenergo’s financial distress casts uncertainty over recovery, we remain steadfast in pursuing every available avenue to secure what is rightfully Ascent Resources plc Annual Report and Financial Statements 2024 | 5 owed. Ahead of the year end the relevant court published the list of approved tested claims and ASL has been approved its conditional claim of €3 million relating to the value of joint venture assets and has had c.€2.7 million of its €8 million revenue plus interest claim approved in the insolvency proceedings. The balance of €5.3 million, which is disputed by the administrator, is being pursued by ASL via the resumption of the previously suspended arbitration proceedings between ASL and Geoenergo to receive a binding decision on quantum and an award on costs, following which ASL expects these amounts to be reflected in the approved creditors list. Concurrently, our significant Energy Charter Treaty (ECT) damages claim against the Republic of Slovenia advanced with notable progress throughout 2024. In February, we achieved a procedural milestone by successfully rebutting Slovenia’s application for security for costs, ensuring the claim remained on track without additional financial burdens as a result of proactively already securing a relevant After The Event insurance policy (a policy which pays out in the event of a negative claim outcome and award of costs against Ascent). In July, we filed our reply memorial, a detailed submission bolstered by further witness statements and independent expert reports, adhering to the International Centre for Settlement of Investment Disputes’ (“ICSID”) agreed timetable. This claim, rooted in Slovenia’s legislative actions that undermined our investment, most notably the 2022 ban on hydraulic stimulation—continues to be a priority. To align our efforts with your interests, we completed a shareholder distribution in March, allocating 49% of any net proceeds (after legal fees and costs) to qualifying shareholders via preference shares, while retaining 51% control and total ownership of the claim. This structure ensures those qualifying stakeholders receive a direct payout resulting from any potential outcome which would not be altered as a result of further changes in the issued share capital of the Company, though we must note that any award, if successful, may be significantly lower than the full claim due to the inherent uncertainties of arbitration. Our legal team remains confident in our case, and we are committed to seeing it through to maximize value from this legacy investment. In December, following the investment into GNG and acquisition of 49% interest in the Utah and Colorado leases operated by American Helium LLC, the Company announced its intention to complete a second distribution with entitlements to a further 41% of the net proceeds to be received in the event of a positive claim outcome and payment of damages award. This distribution was completed in Q1 2025. In April 2025, post period under review, the hearing of both the merits and quantum was convened and took place over five days. Operational Update Operationally, 2024 was a year of transition and re-focus. Our initial investment into US Onshore operations, through GNG, set the foundations for us to build a business around. The Lisbon Valley gas processing plant is expected to resume full production of natural gas in the Summer of 2025, after completion of plant upgrade and identified repair works. Ahead of then GNG expect to receive their 45Q carbon capture, utilization and storage tax credits approval and then turn its attention to re-commissioning the helium liquefaction unit ahead of the 2025 year-end. The December acquisition of the American Helium acreage adds a new layer of opportunity, with our team already assessing exploration and development strategies to unlock its potential. The upstream partners have already identified 25 wells which can be targeted with relatively low risk and high impact rig-less work-over style operations which are affordable, yet could significantly increase near term production from the leases and hence have a quick payback. The Company also remains focused on expanding its footprint in America and securing further access to portfolios of leases with proven producing reserves and material high impact prospective resources to target with the drill-bit. In Slovenia, the insolvency of Geoenergo and the termination of the RJOA brought joint venture production to a close, redirecting our resources and attention to the Americas. Whilst this removed our continuing operational presence in country, as detailed above the Company is still pursuing the interests which are owed to it through continuing insolvency and dispute resolution processes with both the former JV partner, Geoenergo d.o.o. and its related party service provider Petrol Geo d.o.o. Ascent Resources plc Annual Report and Financial Statements 2024 | 6 Corporate Developments The year also brought significant changes to our leadership and corporate structure. This transition was complemented during 2024 by the addition of Lionel Therond as Chief Financial Officer to the executive team, and David Bullion and Edouard Etienvre as Non-Executive Directors, creating a refreshed Board with the expertise to guide our U.S.-centric strategy. Following the departure of the Executive Chairman, James Parsons and other directors in 2024, we have operated without a Chairman. In December 2024 the Company announced the intended appointment of Gilles Thieffry as Non-Executive chairman, however post period under review it was agreed that Mr Thieffry would not join the Board and the Company would be seeking a new Chairman in the near term. In the interim, it has been agreed that Jean-Michel Doublet, independent non-executive director, will assume the role of Interim Chairman. Further, post period under review the Company announced that the I, Andrew Dennan, will not be standing for re-election at the Annual General Meeting in June 2025 and the intention is to appoint David Patterson as Chief Executive Officer. I will continue to work closely with the Company and assist with the pursuit of the Company’s claims in Slovenia, and the Board believes that as the business enters into a new phase with a focus on the U.S., David Patterson will lead the business in growing and delivering its onshore U.S. oil and gas and helium assets. Financially, the Company raised £0.55 million in April 2024 through equity at spot price at the time plus $1 million (£0.81 million) through a senior secured convertible loan note at a 40% premium to the placing price. Later in the year in September 2024 the Company raised US$1 million (£0.76 million) in additional equity at a premium to the spot price at the time. Ahead of the year end, in December 2024, alongside the acquisition of interests in proven and prospective oil and gas leases operated by American Helium LLC the Company raised a further US$0.475 million (£0.378 million) at a significant premium to the prevailing share price. The Company has access to the capital markets to raise the incremental capital it needs to ensure it had the resources to execute its plans. Summary As we close 2024, Ascent Resources Plc stands at a turning point. Our U.S. investments offer a compelling mix of i) midstream activities which include natural gas and helium processing, helium liquefaction along with carbon capture themes; and ii) upstream productivity and potential from a platform which includes proven reserves and significant upsides to target in historically high helium producing reservoirs in the Leadville and McCracken and which benefits from substantial existing production infrastructure and gas gathering systems which run through and/or adjacent to the leases. The Company’s legacy Slovenian claims continue to materially progress and though the outcomes remain currently uncertain, these claims represent a significant value opportunity as and when they materialise. With a renewed leadership team and a solid financial foundation, we are entering 2025 with a clear vision and the tools to execute it. My deepest gratitude goes to you, our shareholders, and to our dedicated team for your support throughout this transformative year. Together, we are building a company with a bright and prosperous future. Andrew Dennan Chief Executive Officer Dated: 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 7 Strategic Report Strategic Report Section 414C of the Companies Act 2006 requires us to provide a Strategic Report that outlines how the Directors have promoted the success of Ascent Resources Plc, offering a fair review of our business, its development, performance, financial position, and key performance indicators. This expanded report details our journey in 2024, a year of profound transformation and strategic realignment. Company Overview Ascent Resources Plc, listed on AIM (AIM: AST) since November 2004, has historically been anchored in Slovenia, operating the Petišovci gas project for over a decade. In 2024, we shifted our focus dramatically, diversifying into the U.S. onshore gas and helium sector while continuing to resolve our Slovenian legacy. This transition reflects our evolution from a single-asset entity to a diversified, revenue-generating company with a presence in the Americas, underpinned by a strategy to leverage high-value markets and maximize legacy value. The Company’s purpose is to contribute responsibly towards meeting the US energy needs through the safe and efficient production of hydrocarbons with a preference for natural gas as the transitional fuel of choice. Key Highlights • U.S. Expansion: In April 2024, the Company invested US$1 million (£0.81 million) in GNG Partners LLC who has recently acquired the Lisbon Valley gas and helium processing plant in Utah. In December, we secured a 49% direct interest in 119,000 gross acres operated by American Helium LLC for US$2 million (£1.59 million) (see note 10 to the accounts below), positioning the Company with proved reserves and an inventory of rig-less work-over style operations designed to increase production from new wells alongside an inventory of new drill candidates which seek to target natural gas reservoirs which have tested helium at up to 1% in other areas, positioning the Company to meaningfully participate in the drilling of potentially highly economic natural gas with helium wells and be positioned to capitalise when the GNG plant resumes helium processing and liquidation operations in due course. • Shareholder Distribution: In March, 49% of the net proceeds the Company may receive in the event of a positive ECT claim outcome and payment of award/settlement were distributed to shareholders via preference shares, whist the Company retained 51% and control, ensuring alignment with your interests. In December, following the US onshore transaction, we announced our intention to complete a further distribution of 41% economic rights to the net proceeds to be received in the event of a positive claim outcome and payment of damages award, which was completed post period under review. • Termination of Slovenian RJOA: Geoenergo’s insolvency and the subsequent appointment of an administrator resulted in the termination of the RJOA effective as of 19 January 2024, ending the Company’s 17-year presence in operational matters in country and prompting an €11 million (c.£9 million) claim being filed in the resulting insolvency proceedings. • Continued pursuit of significant ECT damages claim: The Company’s significant ECT damages claim, which was filed in September 2022, continued to advance in accordance with the previously agreed and original timetable with filings in February, successfully rebutting the Republic of Slovenia’s attempts to delay proceedings with a request for security of costs, and the filing of the Company’s second memorial in July. Post period under review the hearing was held over five days in Paris in April 2025 and the Company remains confident in its claims for the loss of its full investment value in the tight gas field which can no longer be developed due to the changes to Slovenia’s mining laws introduced in May 2022 which ban the production of hydrocarbons with the use of any form of stimulation. Ascent Resources plc Annual Report and Financial Statements 2024 | 8 • Leadership Renewal: New non-executive directors, David Bullion and Edouard Etienvre, joined the Board in 2024, bringing with them a wealth of upstream and midstream operational and oil and gas financing experience. Post period under review, the proposed retirement of Andrew Dennan as Director and CEO and the proposed appointment of David Patterson as CEO post the Annual General Meeting and subject to completion of Director onboarding checks, David is a seasoned oil and gas geologist with over 40 years experience focused on US oil and gas. Post period under review the Company also announced that Jean- Michel Doublet would assume the role of Interim Chairman. Operational Review Our operational narrative in 2024 reflects a clear pivot to the U.S. with an investment in GNG which serves as a strategic placeholder with the option to convert into one million membership units of the Lisbon Valley gas processing plant operational entity, GNG Partners LLC (“GNG”). GNG is positioned to resume full scale natural gas processing operations towards the end of 1H 2025, followed by re-commissioning of the helium liquefier in 2H 2025 and expected approval of application to qualify for 45Q carbon capture, storage and utilisation tax credits in short order as well. The December acquisition of a 49% direct interest in 119,000 gross acres operated by American Helium LLC, which includes proved reserves and prospective resources which include helium rich reservoirs in the Leadville and McCracken, adds significant upstream potential and future catalysts, integrating with our midstream investment and at a time when US natural gas prices have advanced significantly off the 2024 lows. The Company believes that natural gas will be the transitional fuel of choice to power the energy intensive and growing number of AI data centres across North America as the AI revolution continues to accelerate over the next 5 years. In Slovenia, Geoenergo’s self-declared insolvency and the RJOA’s subsequent termination effective as of 19 January 2024 ended the Company’s circa seventeen years operational presence in Slovenia, which was then followed with the concession expiring on 19 April 2024 in accordance with how the protocols of the Slovenian mining legislation deal with concession holders, such as Geoenergo, who enter into insolvency. Accordingly, we filed an €11 million claim in the continuing insolvency process of the former JV partner and in December 2024 we had been confirmed to have had our claim for €3m relating to our interest in JV plant and property conditionally recognised and c.€2.7 million of our c.€8 million delayed revenue plus interest claim approved in the list of tested claims. Ascent’s approved claims represent c.82% of the total approved insolvency estate claims. Ascent has resumed the suspended arbitration proceedings previously initiated against Geoenergo in 2023 to receive its award on costs and to receive a binding decision on the quantum of its delayed revenue plus interest claim, following which the Company expects the amounts of its approved claims in the Geoenergo insolvency estate to increase. The Company continued to progress its International Centre for Settlement of Investment Disputes (“ICSID”) registered Energy Charter Treaty (“ECT”) significant damages claim against the Republic of Slovenia, in relation to the expropriation of the Company’s full investment value of the Petišovci tight gas project. 2024 saw continued progress and milestones achieved including a successful rebuttal of Slovenia’s security-for-costs application in February and the filing of our second memorial in July followed by receipt of Slovenia’s final response in December. Post period under review the hearing was held over 5 days in Paris in April 2025. Amongst the matters addressed during the hearing, which is private and confidential in accordance with the rules of the arbitration process, were the merits and quantum evaluations of the claim. Asset Overview • U.S. – Investment in GNG Partners: Owner of the Lisbon Valley gas processing plant, a 60 MMscfd name plate natural gas processing plant with 1.1 MMscfd helium processing capacity, which is fed by over 500 miles of gas gathering pipelines (279 miles wholly-owned by GNG) in the Paradox Basin. • U.S. – 49% Direct interest in Oil and Gas and Helium leases in Utah & Colorado: Interests acquired from continuing operator and 51% lease holder American Helium LLC, acquired in December for $2 million, Ascent Resources plc Annual Report and Financial Statements 2024 | 9 spans 119,000 acres, includes proved reserves net to Ascent of 9.1 Bcf of natural gas (which the operator has tested helium at up to 1% in certain wells), 1.396 MMbbl of oil and condensates and 1.17 MMbbl of natural gas liquids (APN Energy Consultants LLC, Report on Reserves dated 1 April 2024 prepared using the standard petroleum engineering practices in conformity with the SPE Petroleum resources Management System guidelines) plus offering exploration upside targeting natural gas reservoirs in the high helium tested Leadville and McCracken reservoirs. • Slovenia – Petišovci Joint Venture (Legacy): Joint venture production ceased in 2024, following the appointment of an administrator at the JV partner and the administrator’s subsequent unilateral termination of the RJOA with effect from 19 January 2024 (date of administrator’s appointment). The Company continues to pursue a total claim for €11 million in the continuing insolvency proceedings. • Slovenia – Energy Charter Treaty Damages claim: Further to the Republic of Slovenia introducing amendments to its mining law which have expropriated the Company’s rights to continue to develop the Petišovci tight gas project and which has caused Ascent to suffer the loss of the full investment value of the project, the Company continues to pursue its significant ICSID registered ECT damages claim against the Republic of Slovenia. The claim is well advanced with the parties having filed their respective memorials during 2023 and 2024 and the hearing having been held, post period under review, in April 2025. Further to shareholder distributions in 2024 and 2025 the Company retains a 10% economic interest in the net proceeds realised by the Claimants in the event of a positive claim outcome and receipt of damages award. Our Strategy Our strategy in 2024 has been twofold: to resolve and maximize value from our Slovenian legacy while building a new foundation in the Americas. In Slovenia, we are pursuing our ECT claim and former JV partner insolvency proceedings with vigour, retaining a 10% economic interest in the former (post distributions to shareholders in 2024 and 2025) and 100% interest in the latter of these two well advanced claims. In the U.S., we are focused on cash-generative assets in the natural gas and helium sector, with an investment in GNG the owner of the Lisbon Valley plant which is positioned across three strategic themes i) natural gas processing; ii) helium processing and liquefying; and iii) a move into monetising carbon sequestration. This investment is enhanced with the acquisition of 49% direct interest in American Helium operated leases which benefit from existing infrastructure and are already tied into the GNG Lisbon Valley plant. The Company believes that US natural gas prices will remain strong as gas will be the transitional fuel of choice to power the growing industrial energy demands from the expansion of data centres as the AI revolution continues to accelerate in North America over the next 5 years. The Company believes natural gas with commercial helium grades significantly enhances the economics of drilling such wells and dramatically reduces pay-back and increases the returns of pursuing upstream activities. We aim to balance immediate cash flow with long-term upside, leveraging our operational expertise and strategic partnerships to quickly grow and establish ourselves as a sustainably profitable enterprise moving forward. Our Markets Ascent continues to favour getting further exposure to US natural gas markets which we anticipate will continue to remain robust with the Company taking the strategic belief that gas will continue to play a key role as the transitional fuel of choice with the benefit of existing infrastructure and a fuel source which meets the nations 24/7 365 industrial power needs, which are growing as a result of many factors, including fuelling the increasing number of power hungry data centres as the AI revolution continues to gather pace with its epicentre in North America. Additionally, the global helium market is experiencing unprecedented demand, driven by applications in technology, healthcare, and aerospace, with prices reaching as high as c.US$1,250/Mcf in 2024. The U.S., particularly the Paradox Basin, is a key supply hub, offering a stable regulatory environment and proximity to premium markets. In contrast, Slovenia’s regulatory challenges—culminating in the 2022 hydraulic stimulation ban—underscored the need for diversification. The Americas, with their established natural resource Ascent Resources plc Annual Report and Financial Statements 2024 | 10 frameworks, provide a compelling backdrop for our growth, aligning with our focus on high-value, sustainable opportunities. Directors’ Statement under Section 172 (1) of the Companies Act 2006 The Section 172 (1) of the Companies Act obliges the Directors to promote the success of the Company for the benefit of the Company’s members as a whole. The section specifies that the Directors must act in good faith when promoting the success of the Company and in doing so have regard (amongst other things) to: a) the likely consequences of any decision in the long term; b) the interests of the Company’s employees; c) the need to foster the Company’s business relationship with suppliers, customers and others; d) the impact of the Company’s operations on the community and environment; e) the desirability of the Company maintaining a reputation for high standards of business conduct; and f) the need to act fairly as between members of the Company. The Board of Directors is collectively responsible for the decisions made towards the long-term success of the Company and how the strategic, operational and risk management decisions have been implemented throughout the business is detailed in this Strategic Report. The Board has continued to make significant progress in the ICSID registered ECT damages claim against the Republic of Slovenia. During the year the Company successfully rebutted the Republic of Slovenia’s pleas for further security of costs, having pre-emptively already secured a suitable after the event insurance policy in 2023. In July the Company filed its second memorial and Slovenia filed their final response memorial in December. Post period under review the tribunal held the hearing of merits and quantum over five days in Paris in April 2025. The Company’s wholly owned subsidiary, Ascent Slovenia Limited (ASL), continues to defend its working interests in Slovenia following the self-appointed insolvency of the Company’s joint venture partner and concession holder Geoenergo d.o.o.. The insolvency was filed after ASL received a favourable arbitration interim award validating its interpretation of ASL’s rights to revenues from wells above the baseline production whilst ASL was in a preferential cost recovery position (i.e. until it had earned back its investment outlay) but before the tribunal could render a final award on quantum. Further to the appointment of an administrator the RJOA was unilaterally terminated effective as of 19 January 2024 (the date on which the administrator was appointed). The Company filed a claim for a total of c.€11 million (made up of c.€3 million claim to ASL’s share of JV assets caught up in the Geoenergo insolvency estate and c.€8 million relating to money claimed as owed to ASL from historic production plus interest. In December the court approved the administrator’s list of tested claims which included ASL’s claim for up to c.€3 million relating to ASL’s interest in JV plant and property and approved c.€2.7 million of the €8 million monies plus interest claimed, as a result of this Ascent approved claims represent c.82% of the total approved claims in the insolvency estate. Ascent has since requested the resumption of the arbitration proceedings which were suspended when Geoenergo filed for insolvency and post period under review that process continues and is expected to be concluded during Q2 2025. In tandem with ASL’s claims against Geoenergo, ASL is also in claims with the JV’s service provider, Petrol Geo d.o.o. (a connected party to Geoenergo given their common significant and influencing shareholder Petrol d.o.o.). ASL is defending claims brought against the JV from Petrol Geo relating to alleged unpaid sums which Geoenergo did not pay to either ASL or Petrol Geo in the months prior to its insolvency and claims brought by ASL against Petrol Geo under the Framework Build Operate transfer Agreement relating to reimbursement of prepaid easement rights which Ascent Resources plc Annual Report and Financial Statements 2024 | 11 ASL will no longer enjoy the benefit of as well as Petrol Geo’s obligation to buy the JV assets from ASL upon termination of the RJOA and/or concession contract. In accordance with prudent accounting practices Ascent has included, as a provision within the accounts (see note 14 to the accounts below), the claim brought against the JV by Petrol Geo as a potential liability but has not made a provision for the recovery of proceeds from the Geoenergo insolvency process. In December 2024 the Company announced its investment in American Helium and its new growth strategy in US onshore gas and helium. Further to the Company’s announcement in December, post year end the Company created a joint venture vehicle with Delta Energy Corp, which enhances the environment for collaboration and business development. The defence of the Company’s legacy investment in Slovenia alongside executing new business development activities has been combined with capital raises to fund the business. Further during 2024 the Company announced a distribution of up to 90% of a successful outcome of the Company’s ECT claim against the State of Slovenia to shareholders, with an initial 49% economic interest distribution in the first half of the year and the announcement of intention to distribute a further 41% in December was duly completed in Q1 2025 post period under review. The distribution reflects the Board’s commitment to limit dilution to existing shareholders, whilst pursuing US operations to position the Company with future revenue generating growth opportunities focused on a stable jurisdiction with transparent markets and with the ability to do business. Stakeholder engagement The Board recognises that our employees are one of the key resources of our business which enables delivery of the Company’s vision and goals. Annual pay and benefit reviews are carried out to determine whether all levels of employees are benefited equally and to retain and encourage skills vital for the business. The Remuneration Committee oversees and makes recommendations for executive remuneration and any long-term share/ option awards as well as the award of preference share options pursuant to the distributions for the relevant executives involved in those workstreams. In 2024 the Company made option awards to certain directors and employees through the Company’s wholly owned subsidiary, Ascent Claim Entitlement SPV Ltd. The options, totalling 6,171,788, were made to those individuals who were managing the ECT claim. The options granted broadly replicated their existing option coverage under Ascent Resources plc. A scorecard is prepared, approved and reviewed. Bonus awards are based on achievement of scorecard targets. Employees are informed, both of results and important decisions, and are encouraged to feel engaged and to improve career potential. The Board acknowledges that a strong business relationship with suppliers and customers is a vital part of the growth. Whilst day to day business operation is delegated to the executive management, the Board sets directions with regard to new business ventures. The Board uphold ethical business behaviour and encourages management to seek comparable business practices from all suppliers and customers doing business with the Company. We value the feedback we receive from our stakeholders, and we take every opportunity to ensure that where possible their wishes are duly considered. Policies and processes The Board considered a number of governance matters during the year. These included amongst other matters, the review and approval of updated Matters Reserved for the Board and the review and approval of updated Schedule of Financial Authorities, together with the Travel and Expenses policy. The Board is responsible overall for reviewing the effectiveness of the policies and processes, while the role of senior management is to implement Board policies and processes. Ascent Resources plc Annual Report and Financial Statements 2024 | 12 Maintaining High Standards of Business Conduct The Company is incorporated in the UK, governed by the Companies Act 2006 and carries out its business in Slovenia as well its investment in US onshore gas and helium processing plant and having business development interests in North America. The Board guides management and the employees to conform with relevant statutory and regulatory provisions in the United Kingdom and any other prevailing regulations and best practices at other operative locations. The Company has adopted the Quoted Companies Alliance Corporate Governance Code and is transitioning to compliance, where possible, with the 2023 Code, which will be adopted in respect of the financial year ended 31 December 2025. The Board recognises the importance of maintaining a good level of corporate governance, which together with the requirements to comply with the AIM Rules ensures that the interests of the Company’s stakeholders are safeguarded. The Board receives training periodically, and in 2024 the Board and all employees received Anti-Bribery and Corruption training. The Board has insisted that ethical behaviour and business practices should be implemented across the business. Anti-corruption and anti-bribery training are provided to staff and contractors and the anti-bribery statement and policy is contained in the Company’s Employee Manual. The Company’s expectation of honest, fair and professional behaviour is reflected by this and there is zero tolerance for bribery and unethical behaviour by anyone relating to the Company. The importance of making all employees feel safe in their environment is maintained and a Whistleblowing policy is in place to enable staff to confidentially raise any concerns freely and to discuss any issues that arise. Strong financial controls are in place and are well documented. The Chair of the Audit Committee is the appointed Whistleblowing officer. Shareholders The Board places equal importance on all shareholders and recognises the significance of transparent and effective communications with shareholders. As an AIM listed company there is a need to provide fair and balanced information in a way that is understandable to all stakeholders and particularly our shareholders. The Company values the views of its shareholders, and the Directors are keen to engage with shareholders and work with them so that they are aligned to the strategy and growth of the business. The primary communication tool with our shareholders is through the Regulatory News Service, (“RNS”) on regulatory matters and matters of material substance. The Company’s website provides details of the business, investor presentations and details of the Board and Board Committees, changes to major shareholder information, QCA Code disclosure updates under AIM Rule 26. Changes are promptly published on the website to enable the shareholders to be kept abreast of Company’s affairs. The Company’s Annual Report and Notice of Annual General Meetings (AGM) are available to all shareholders. The Interim Report and other investor presentations are also available on our website. The AGM is an annual opportunity for shareholders to meet with the Company and receive a full update of the business from both the Board and management. There is full transparency of the voting on the resolutions at the AGM, with the Company disclosing the proxy votes received on each resolution in the RNS released shortly after the AGM. Shareholders are encouraged to attend the AGM and any other shareholder meetings held during the year. In order to increase shareholder awareness, the Company has recorded a number of media interviews which are available to view and/or download on leading investor- focused websites and from the Company’s social media accounts. An email alert service has also been established to which shareholders can subscribe to receive company announcements as and when they are released. Ascent Resources plc Annual Report and Financial Statements 2024 | 13 Community and Environment The Board places utmost importance of matters pertaining Environmental, Health, Safety and Social Responsibility and guides the Company on following due policies and processes in order to protect the Community the Company operates within. Health and Safety measures are reviewed periodically, and the necessary improvements are recommended for better practices. The Company recognises its role as an oil and gas exploration and production company and is aware of the potential impact that it may have on the environment. The Company ensures that its subsidiary companies comply with the local regulatory requirements with regard to the environment and seeks to engage local specialised subcontractors where applicable. Financial Report Financial KPI’s 2024 £’000s 2023 £’000s Variance £’000s Revenue – 1,412 (1,412) Other income 3 363 (287) Cost of sales (26) (626) 600 Administrative Expenses (2,416) (1,960) 359 Operating Cash Flow (1,480) (1,353) (59) Cash Balance 111 475 (364) Operational Performance The Petišovci JV wells produced 46,283 standard cubic metres of gas and 2,758 litres of condensate from the Pg-10 and Pg-11A wells during the first 19 days of the year. Further to the JV partner and concession holder, Geoenergo d.o.o. appointing an administrator on 19 January 2024 the RJOA was unilaterally terminated effective as of the date of the administrators’ appointment. The Company no longer expects to receive revenues from Slovenian operations. The acquisition of a 49% direct non-operated interest in American Helium LLC operated oil and gas leases located in Utah and Colorado had an effective closing date as of the last day of 2024, therefore no production for 2024 is relevant to Ascent’s interests. Production KPI's Jan 2024 Feb-24 Mar-24 Apr-24 May -24 Jun -24 Total gas (k scm) 46.283 – – – – – Total gas (M scf) 1,633.18 – – – – – Average daily gas (k scm) 2.43 – – – – – Average daily gas (k scf) 86.17 – – – – – Total condensate (litres) 2,758.07 – – – – – CGR (litres per 1000 scm gas) 59.59 – – – – – BOE - gas 272.20 – – – – – BOE - condensate 17.33 – – – – – Total BOE 289.53 – – – – – Production KPI's Jul -24 Aug -24 Sep -24 Oct -24 Nov -24 Dec -24 Total gas (k scm) – – – – – – Total gas (M scf) – – – – – – Average daily gas (k scm) – – – – – – Average daily gas (k scf) – – – – – – Total condensate (litres) – – – – – – CGR (litres per 1000 scm gas) – – – – – – BOE - gas – – – – – – BOE - condensate – – – – – – Total BOE – – – – – – Ascent Resources plc Annual Report and Financial Statements 2024 | 14 Our Principal risks and uncertainties Slovenia Disputes Risk Dispute with the Republic of Slovenia The Company is pursuing an Energy Charter Treaty (“ECT”) damages claim for c.€600 million, relating to the loss of the full economic value of the Company’s investment as a result of Slovenia’s actions in breach of the country’s obligations under international law. The claim is expected to progress through the arbitration process, whilst the Company remains amenable to settlement of its claim sooner if achievable. Although the Company considers that it has a strong claim after the hearing which took place post period review in April 2025, there is an inherent risk when carrying arbitration proceedings that the full amount of damages might not be recovered. The Company is mitigating such risk by instructing a reputed London based law firm specialised in investment treaty arbitration to manage such claim together with local Slovenia counsels with previous arbitration experience, with the internal support of the Company’s inhouse lawyer. The Company signed a Damages Based Agreement with ENYO Law and an After the Event insurance was secured in October 2023 which protect the company in case of adverse costs being imposed. The Company also protected its interests and financial position by winning a procedural order in 2024 against the Republic of Slovenia in relation to their request for a security for costs. JV Update Following Ascent Slovenia Limited (ASL) receiving a favourable arbitration interim award decision in October 2023 in favour of the Company’s interpretation of the RJOA and its entitlements to 90% of the revenues from all wells on the concession area except for Pg-1 which have aggregate production in excess of the RJOA’s baseline production profile whilst it is in a cost recovery position, but before the tribunal were able to issue its award the quantum of Ascent’s claim for c.€8million in revenue plus interest, Geoenergo filed for self-appointed insolvency in the first week of January 2024. Subsequently an administrator was appointed on the 19 January 2024 and the administrator unilaterally terminated the RJOA effective as of the date of their appointment. Ascent Slovenia Limited has therefore filed an €11 million claim in the continuing insolvency process of its former JV partner Geoenergo. In December 2024 the court published the list of approved tested claims and ASL had its conditional claim of c.€3 million relating to ASL’s 75% interest in JV plant and property caught up in the Geoenergo insolvency estate approved and had c€2.7 million of its c.€8million monies owed plus interest claims approved. At the time of the court publishing the list of approved tested claims ASL’s share of approved claims represented approximately 82% of the approved amounts of claims recognised as forming the approved insolvency estate. ASL has subsequently requested the resumption of the previously suspended arbitration proceedings against Geoenergo (which is now under the control of the administrator) to receive its award on costs and the final decision in relation to quantum it is owed, following which the Company expects the amounts of its approved claims in relation to the Geoenergo insolvency estate to increase. Ascent Resources plc Annual Report and Financial Statements 2024 | 15 In connection with the insolvency of Geoenergo, ASL is defending a claim brought against the JV for alleged amounts owed plus interest of c.€440 thousand (£373 thousand) in relation to disputed services provided by Petrol Geo (a connected party to Geoenergo by virtue of their common and controlling shareholder Petrol d.o.o.) under the service agreement. A portion of the disputed amounts claimed would have been payable upon ASL’s receipt of hydrocarbon production revenues which Geoenergo failed to pay to ASL and/or subsequently Petrol Geo as per ASL’s direction and requests, other parts of the claim relate to payments for invoices for services alleged to have been provided post the termination date of the relevant service agreement (which expired upon the termination of the RJOA). This dispute is expected to be resolved in arbitration proceedings which are expected to conclude in 2H of 2025. There is a risk that if ASL receives an unfavourable tribunal decision and is not able to agree to defer payment of the amounts it is rendered to pay until such time as it has received some of the proceeds owed to it from the Geoenergo insolvency estate that ASL will need to access more funding to remain a going concern. Additionally, ASL has a dispute against Petrol Geo under the Framework Build Operate Transfer Agreement signed in 2013 in relation to ASL being reimbursed for prepaid easement fees which it will no longer receive the benefit of as well as Petrol Geo’s obligation to buy ASL’s 75% interest in the JV plant and property upon the termination of the RJOA and/or concession agreement. This dispute is expected to progress through mediation and ultimately potentially arbitration pursuant to the dispute resolution mechanism. In accordance with prudent accounting standards, the Company has made a provision for the potential liability under the service agreement dispute with Petrol Geo but has not recognised provisions for any proceeds which may be realised by the Company in relation to the Geoenergo insolvency proceedings and Framework Build Operate Transfer Agreement dispute against Petrol Geo. The Company retains Slovenian legal advisors to support it in relation to these matters. Whilst partial resolutions were achieved during 2023 and the company continues to defend the shareholders’ interests in Slovenia, there can be no certainty of the future outcomes. Commodity Prices The Group is exposed to risks arising from fluctuations in the demand for, and price of, hydrocarbons. Oil and gas prices depend on numerous factors over which the Group does not have any control, including global supply, international economic trends, currency exchange fluctuations, inflation, consumption patterns and global or regional political events. This risk impacts evaluation of business development opportunities where commerciality depends on assumptions around future commodity prices. In terms of evaluating and sanctioning new investments, the Group adopts a conservative price forecast to ensure capital is allocated to projects with robust economics, even in lower commodity price environments. Ascent Resources plc Annual Report and Financial Statements 2024 | 16 Permitting risk The single biggest issue when carrying out operations in Slovenia over the past years has been the environmental permitting process. This is not unique to Ascent, and it is our opinion that inefficiencies and uncertainties within the environmental permitting process are a significant hurdle to economic growth in Slovenia. However, in May 2022 Slovenia approved amendments to its mining law which prohibit the granting of mineral concessions where the use of hydraulic stimulation is used to explore for or produce hydrocarbons, and Ascent is currently defending its legal position in this respect in the ECT arbitration claim against the Republic of Slovenia. After its JV partner commenced insolvency proceedings in January 2024, Ascent was notified that the mining right (and thus also the Concession Agreement) for exploitation of hydrocarbons in the exploitation area of “Murska depresija” shall cease (ex lege) on 19 April 2024 and all rights and obligations, arising from the mining right, were transferred (ex lege) to the competent ministry, i.e. the Ministry of Natural Resources and Spatial Planning of the Republic of Slovenia. The Company and ASL retain Slovenian counsel to advise them on the legal implications of the actions happening to the Company as a result of Geoenergo’s insolvency. Whilst the Company has legitimate claims and will vigorously pursue them, there can be no certainty of the full or any amounts being recovered in the administration process. Concession extension risk Given the insolvency, in January 2024 of the concession holder Geoenergo, Ascent was notified that the mining right (and thus also the Concession Agreement) for exploitation of hydrocarbons in the exploitation area of “Murska depresija” shall cease (ex lege) on 19 April 2024 and all rights and obligations, arising from the mining right, were transferred (ex lege) to the competent ministry, i.e. the Ministry of Natural Resources and Spatial Planning of the Republic of Slovenia. The Company and ASL retain Slovenian counsel to advise them on the legal implications of the actions happening to the Company as a result of Geoenergo’s insolvency. Whilst the Company has legitimate claims and will vigorously pursue them, there can be no certainty of the full or any amounts being recovered in the administration process. Risk to Insolvency of JV Partner During the year ASL’s joint venture partner and concession holder in Slovenia, Geoenergo d.o.o. filed for insolvency. As set out in the Slovenia Disputes Risk section (above) the Company is pursuing claims in the continuing insolvency proceedings. There can be no certainty of the claim outcome. The Company retains Slovenian legal advisors to help mitigate its risk and maximise its success in the outcomes of the continuing processes. Sanctions Risk The Company and all subsidiaries and members of its global corporate group (collectively the “Ascent Group”) are committed to ensuring that all parts of our business and all our employees fully comply with all sanction laws applicable to our work. These include all applicable European Union (“EU”) and United Kingdom (“UK”) sanctions laws and associated regulations. Ascent Resources plc Annual Report and Financial Statements 2024 | 17 Availability of funding Risk Ascent’s asset portfolio does not yet generate the cash necessary to grow the business at a rate in keeping with its ambition and the Group will need to raise additional funds to implement its strategy. The ability of the Group to raise funds will depend on factors not wholly with the control of management, including general market sentiment and attitudes toward small-cap energy companies. As a result, there can be no assurance that the required funding will be available on favourable terms, if at all. Failure to raise required funds could have a material adverse effect on the Group’s business, operating results and financial condition, and may result in erosion of value for shareholders. The Group’s strategic focus on acquiring and developing an asset portfolio, which is focused on producing discovered reserves with behind-pipe, up-dip and step out upsides partly mitigates the risk by balancing production and exploration exposure to the hydrocarbon industry. Management also seeks to mitigate risk through prudent management of costs and rigorous evaluation of investment opportunities to ensure these will be attractive to investors in the debt and capital markets. Failure to identify new opportunities With the recent events in Slovenia which no longer allow ASL to economically produce the Petišovci tight gas it was important for the company to identify new opportunities and secure them. The risk of failing to identify new opportunities was present but the company made an investment into a US 60mmscfd name plate gas processing plant with helium purification and liquidation units in the US with the aim of increasing its scale, presence and footprint in the future both in midstream gas processing as well as in December acquiring a 49% direct non- operated interest in oil and gas leases in Utah and Colorado which are operated by American Helium LLC, therefore this risk has been minimised. Political Risk: The Company has been experiencing a challenging environment in Slovenia for the past years with the sentiment that our group of companies have been politically targeted amongst other reasons because of their foreign origin. Political risk is therefore identified, with a possibility of Slovenia not complying with an adverse arbitral award in the event that Ascent Resources Plc and Ascent Slovenia Limited are successful in their ECT Claim. The Company is looking to minimise this risk by appointing top law firms both in Slovenia and in the UK to assist in protecting the group companies’ rights and defend their interests in Slovenia. The Company is focused on growing internationally in the United States where the political environment is expected to be supportive of natural gas development and production in the medium term, given the long history of domestic production and well established regulatory and legal frameworks coupled with the declaration by the Trump administration of a national energy emergency in February 2025. However other policies of the Trump administration, including but not limited to the introduction of tariffs pose wider geo-political risks. Ascent Resources plc Annual Report and Financial Statements 2024 | 18 Resources Risk The Company has made an investment into a US gas and helium processing business with the aim of increasing its footprint in the future. The activities include processing and treatment of third parties’ natural gas and helium production, helium liquefaction capabilities and distribution to the markets. The resources risk in this new project is low, given that the plant is fed by a gas gathering system which spans over 520miles and is adjacent to a number of different fields and different operators. However, the gas plant has recently been acquired out of Chapter 11 Insolvency and there are risks associated with agreeing new contracts for access to gas to process and this is also contingent on the gas field operators wanting to produce gas. In December 2024 the Company acquired a 49% direct non-operated interest in oil and gas leases operated by American Helium LLC in Utah and Colorado. These leases include proven reserves which have been appraised by an independent third party and prospective resources which have only been evaluated by the operator’s technical team. There is a risk that reserves and resources may be impaired due to inability to produce them for a protracted period in time and/or otherwise as a result of significant changes to the gas price. The leases are held via the continuing production from exiting well bores. There is a risk that further well commitments may arise should production have to be abandoned on a relevant lease. This risk is minimised by working with an Operator whose team has had presence in Utah and Colorado upstream operations for over c.8 years and who have established knowledge of the acreage and regulatory frameworks. How we operate The Company utilises a full range of advanced geophysical, geological and other state-of-the-art technology to evaluate and de-risk projects and to reap maximum benefit from its appraisal, development and production activities. Our Petišovci project historically operated through a local entity in a unincorporated joint venture and our new investments in the Americas will be held through 100% owned subsidiary structures and new joint ventures, including the Delta JV, are incorporated vehicles. Our people Ascent has a small executive team implementing a clear growth strategy. This is supplemented, as the need requires, with regional technical, legal, compliance and operational expertise to ensure the highest standards are delivered on our projects. As an important local employer in our area of operation we take our environmental and social responsibilities seriously and always strive to be a good corporate citizen. Approved for issue by the Board of Directors and signed on its behalf. Andrew Dennan Chief Executive Officer 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 19 Summary of Group Net Oil and Gas Reserves as of 31 December 2024 Net Reserves in US Onshore American Helium acreage (AST share 49%) Reserves Net Natural Gas (MMscf) Net Oil and Condensate (Mbbl) Net NGL (Mbbl) Proved Developed Producing 3,785.18 54.48 353.49 Proved Developed Non-Producing 1,761.15 16.07 212.14 Proved Undeveloped 3,277.81 1,294.52 578.30 Total Proved 8,824.14 1,365.07 1,147.87 Source: APNEnergy CPR 1st April 2024 updated with actual production until 31 December 2024. Definitions: 1. Proved Developed Reserves - Proved reserves to be recovered through existing wells and with existing facilities. a. Proved Developed Producing Reserves - Proved developed reserves to be produced from completion interval(s) open to production in existing wells; b. Proved Developed Non-producing Reserves - Proved developed reserves behind the casing of existing wells or at minor depths below the present bottom of such wells which are expected to be produced through these wells in the predictable future. The development cost of such reserves should be relatively small compared to the cost of a new well. 2. Proved Undeveloped Reserves - Proved reserves to be recovered from new wells on undrilled acreage or from existing wells requiring a relatively major expenditure for recompletion or new facilities for fluid injection. 3. Glossary of terms a. Bcf – Billion standard cubic feet b. Mcf – Thousand standard cubic feet c. Mbbl – Thousand barrels d. MMbbl – Million barrels e. MMscf – Million standard cubic feet f. Step out – The development of an additional potential beyond the established boundaries of a known oil or gas field to extend the proven limits of the field g. Up Dip – The development of an additional potential on a structurally higher side of an identified reservoir with potentially higher fluid saturation Qualified Persons Statement Leonardo Salvadori, a qualified Geologist with over 35 years of relevant experience in the oil and gas industry and a member of SPE (Society of Petroleum Engineers) has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009 and in accordance with the Petroleum Resources Management System (PRMS) issued in June 2018 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, the Society of Petroleum Evaluation Engineers, the Society of Exploration Geophysicists (SEG), the Society of Petrophysicists and Well Log Analysts (SPWLA) and the European Association of Geoscientists & Engineers (EAGE). Ascent Resources plc Annual Report and Financial Statements 2024 | 20 Directors’ Report The Directors present their Directors’ Report and Financial Statements for the year ended 31 December 2024 (“the year”). Principal activities The principal activities of the Group comprise of U.S. onshore oil and gas and helium production and development operations. The Company is registered in England and Wales and is quoted on the AIM Market of the London Stock Exchange. The Group’s corporate management is in London and its onshore gas and helium interests during the period under review were in the U.S. states of Utah and Colorado. The Group also manages a number of claims resulting from its legacy position in Slovenia, which most notable include the Energy Charter Treaty Claim for approximately €600 million and a claim for approximately €11 million claim in the insolvency proceedings of its former JV partner in Slovenia. The Group operates its own undertakings both through subsidiary companies and joint ventures. The subsidiary undertakings affecting the Group’s results and net assets are listed in Note 2 to the Financial Statements. Historically the Company had been anchored in Slovenia, operating as the manager of the Petišovci tight gas project for over a decade. In 2024, the focus was shifted dramatically, diversifying into the U.S. onshore gas and helium sector while resolving our Slovenian legacy. This transition reflects our evolution from a single-asset entity to a diversified, revenue-generating company with a presence in the Americas, underpinned by a strategy to leverage high-value markets and maximise legacy value. Future developments Post period under review the Company has completed the proposed second distribution to qualifying stakeholders with ringfenced access to 41% of the net proceeds to be received by the Company in the event of positive ECT claim outcome and receipt of damages award from the Republic of Slovenia. Following this distribution in Q1 2025 the Company retains a 10% economic interest in the net proceeds it will receive in the event of positive claim outcome and payment of damages award. Post period in review the ICSID registered arbitration tribunal held the hearing on merits and quantum over 5 days in April 2025 in Paris. The Company also expects to conclude mediation and arbitrations with the Geoenergo administrator and Geoenergo’s related party and JV service provider Petrol Geo d.o.o. during 2025. Post period under review, in May 2025, the Company continued to advance its strategic pivot towards the U.S. onshore oil & gas and helium sector with significant developments announced on 22 May 2025. The Company entered into conditional agreements, subject to shareholder approval for the issuance of new shares, to acquire a 49% direct non-operated interest in a portfolio of producing and prospective oil and gas leases in west Colorado, operated by Locin Oil Corporation, spanning over 100,000 acres. This acquisition, for a consideration of US$2.5 million, was to be satisfied through the issuance of US$0.6 million in new shares at 0.5 pence per share and a US$1.9 million three-year convertible loan note with a conversion price of 1.0 pence per share and a 6.5% annual interest rate. The Colorado leases hold proved reserves (PDP and PDNP) of 8.06 Bcf of natural gas net to the joint operating agreement partners, with current production averaging 2 MMscfd in 2024 and potential for helium content up to 1.2%. Additionally, the Company conditionally acquired a 10% direct non-operated interest in a portfolio of approximately 80,000 acres of oil, gas, and helium-rich leases in northern Utah, operated by ARB Energy LLC, for US$750,000, satisfied by issuing 111,940,299 new shares at 0.5 pence per share. This Utah portfolio includes proved developed producing reserves of 8.7 Bcf of natural gas, with production averaging 2.3 MMscfd in 2024 and helium content up to 0.54%. Ascent also secured rights to earn a 50% economic interest in incremental production from existing wells through work programs and an option to acquire a further 23% interest in the Utah leases for US$1.5 million by 15 October 2025. Ascent Resources plc Annual Report and Financial Statements 2024 | 21 In addition to Proven Reserves, the Arb Energy Utah leases have multiple potential upsides in up-dip and on-trend step out prospects which Arb Energy Utah estimated to have Proved Undeveloped Reserves of 44 Bcf, Probable Reserves of a further 23 Bcf and Prospective Resources of an additional 109 Bcf of natural gas with potentially 1.3 Bcf of Helium included as well. The JOA partners have also agreed to jointly evaluate the prospect inventory with a view to high-grading the opportunity set over the coming months. In these evaluations the partners expect to target the Entrada formation which has a high helium content association of up-to 1% contained within the produceable natural gas and condensate volumes. Ahead of then the Company and ARB expect to initiate a number of work operations on existing well bores to install artificial lift technologies designed to be low cost and low risk operations which can meaningfully enhance existing production. Locin Oil Corporation has also identified a number of material prospects into target structures which have previously tested or produced gas in the 1960’s and 70’s as well as on-trend step-out prospects estimated by Locin Oil Corporation to have gross Prospective Resources of an additional 663 Bcf of natural gas with potentially up to 5.3 Bcf of Helium included as well. Ascent and Locin have also agreed to jointly evaluate the prospect inventory with a view to high-grading the opportunity set over the coming months. In these evaluations the partners also expect to target the Entrada production formation which has a high helium content association contained within the produceable natural gas and condensate volumes. To support these acquisitions and ongoing operations, Ascent raised gross proceeds of £1.35 million (US$1.8 million) through the issuance of 270,000,000 new shares at 0.5 pence per share. The Company also partially redeemed US$300,000 of its senior secured loan with RiverFort Global Opportunities, also converting US$100,000 of the principal into 10,300,465 shares at 0.7245 pence per share, and reprofiled the remaining US$1,053,683 balance, extending the maturity to 22 April 2027 with a fixed conversion price of 1.0 pence per share. Additionally, 18,439,431 existing warrants to Riverfort were amended to an exercise price of 1.0 pence, and new warrants equivalent to 35% of the reprofiled debt were issued at the same price. Further to the Company’s transformation over the last twelve months, which include significant advancement of its Slovenian legacy claims and a successful repurposing of the Company to focus itself on growing onshore US oil and gas with helium assets, the Company proposes to appoint Mr David Patterson as Chief Executive Officer and Director of the Company. David is an experienced oil and gas explorer and geologist who has over 43 years of experience in the oil and gas industry experience onshore U.S. which includes a number of years of work in Utah and Colorado where most notably David was VP Geology for Rose Petroleum Plc (now called Zephyr Energy Plc) where he lead the evaluation of over 250,000 acres of leases in Utah. David has held previous roles which include VP and manager of Exploration, VP of Geology, Supervisor of Reserves and Senior Geological Engineer in prior roles through his career. David is currently VP of Exploitation at D3 Energy where he will also continue his role and will be retained by the Company for his services to Ascent with an annual salary of US$120,000 per annum, relating to which the Company has agreed with American Helium, Locin Oil and ARB Energy that Ascent can recharge the respective joint operations the full annual salary such that Ascent expects to pay $43,200 of this amount per annum, along with an options package granting new options in the Company exercisable at a price of 1p per Option, which shall vest over 3 years and be exercisable over the following 2 years thereafter. David will be appointed to the Board and position of CEO following the Company’s next annual general meeting, subject to completion of customary director on-boarding checks. Post period under review, Mr Andrew Dennan has elected not to stand for re-election at the Company’s upcoming AGM and will retire as Director and Chief Executive Officer of the Company upon the convening of the AGM. Andrew has led Ascent for five years and feels this transformative moment is the right time to step aside as the business enters a new phase with a particular focus on the US. He will continue to support the Company during an extended handover period to the proposed new CEO and will in addition continue to support the Company in its pursuit of the Company’s highly valuable claims against the Republic of Slovenia Ascent Resources plc Annual Report and Financial Statements 2024 | 22 under the Energy Charter Treaty, as well as in insolvency and associated proceedings against its Slovenian former JV partner and service provider. His detailed knowledge of these ongoing processes remains invaluable to Ascent. The Board are very thankful for the leadership and strategic input from Andrew over the last five years, where he has been instrumental in defending the Company’s interests in Slovenia and re-purposing the Company to execute its new US onshore growth strategy and wish him success in future pursuits. The Company also announces that as part of the refining of its board composition it no longer intends to immediately appoint a Chairman to the Board and accordingly the Company will now not be appointing Mr Gilles Thieffry to that position as previously announced on 9 December 2024. Mr Jean-Michel Doublet will assume the role of Interim Chairman and the Company will look to appoint a Chairman in due course. Additionally, as part of positioning the Company to grow via a production lead strategy onshore US, the Company is implementing certain cash preservation measures which include current C-suite and Board of Directors of the Company agreeing to reduce the cash component of their employment and/or service contracts by 30% over the next six months and their corresponding intention to settle these owed amounts, by subscribing for equity on the same terms as the placing (above), as soon as they are either out of a closed period or otherwise not in receipt of insider information and can cause a PMDR dealing. Furthermore the Company also expects to implement further cost saving measures, which in aggregate with the above changes are expected to reduce the general and administrative cash costs of the business by approximately 20% per annum, with such savings expected to be realised through 2H 2025 and beyond. These events reflect Ascent’s continued execution of its U.S.-focused growth strategy, positioning the Company to capitalise on high-potential oil & gas and helium assets while maintaining progress on its Slovenian legacy claims. Financial risk management Details of the Group’s financial instruments and its policies with regard to financial risk management are given in Note 22 of the Financial Statements. Results and dividends The loss for the year after taxation was £2.726 million (loss for 2023: £0.851 million). The Directors do not recommend the payment of a dividend (2023: Nil). Post balance sheet events In January 2025 post the year end, the Company held a general meeting of shareholders to approve a second bonus issue of preference shares for ring-fenced access to an economic interest in 41% of the net proceeds to be received by the Company in the event of a positive ECT claim outcome. This follows the distribution in early 2024 of 49%, giving qualifying shareholders an entitlement of up to 90% of net proceeds received by the Company in the event of a positive outcome. It should be cautioned that in the event the Company is successful in its claim, any amount actually received by the Company may be significantly lower than the full claim. In May 2025, the Company continued to advance its strategic pivot towards the U.S. onshore oil & gas and helium sector with significant developments announced on 22 May 2025. The Company entered into conditional agreements, subject to shareholder approval for the issuance of new shares, to acquire a 49% direct non-operated interest in a portfolio of producing and prospective oil and gas leases in west Colorado, operated by Locin Oil Corporation, spanning over 100,000 acres. This acquisition, for a consideration of US$2.5 million, was to be satisfied through the issuance of US$0.6 million in new shares at 0.5 pence per share and a US$1.9 million three-year convertible loan note with a conversion price of 1.0 pence per share and a 6.5% annual interest rate. The Colorado leases hold proved reserves (PDP and PDNP) of 8.06 Bcf of natural gas net to the joint operating agreement partners, with current production averaging 2 MMscfd in 2024 and Ascent Resources plc Annual Report and Financial Statements 2024 | 23 potential for helium content up to 1.2%. Additionally, the Company conditionally acquired a 10% direct non- operated interest in a portfolio of approximately 80,000 acres of oil, gas, and helium-rich leases in northern Utah, operated by ARB Energy LLC, for US$750,000, satisfied by issuing 111,940,299 new shares at 0.5 pence per share. This Utah portfolio includes proved developed producing reserves of 8.7 Bcf of natural gas, with production averaging 2.3 MMscfd in 2024 and helium content up to 0.54%. Ascent also secured rights to earn a 50% economic interest in incremental production from existing wells through work programs and an option to acquire a further 23% interest in the Utah leases for US$1.5 million by 15 October 2025. To support these acquisitions and ongoing operations, Ascent raised gross proceeds of £1.35 million (US$1.8 million) through the issuance of 270,000,000 new shares at 0.5 pence per share. The Company also partially redeemed US$300,000 of its senior secured loan with RiverFort Global Opportunities, also converting US$100,000 of the principal into 10,300,465 shares at 0.7245 pence per share, and reprofiled the remaining US$1,053,683 balance, extending the maturity to 22 April 2027 with a fixed conversion price of 1.0 pence per share. Additionally, 18,439,431 existing warrants to Riverfort were amended to an exercise price of 1.0 pence, and new warrants equivalent to 35% of the reprofiled debt were issued at the same price. On the corporate front, on 22 May 2025, the Company announced the proposed appointment of David Patterson, an experienced U.S.-based geologist, as Chief Executive Officer, to be effective following the Annual General Meeting in June 2025, subject to customary director onboarding checks. Andrew Dennan, the current CEO, will not to stand for re-election at the AGM but will continue to support the Company’s Slovenian legacy claims during a handover period. Jean-Michel Doublet, a senior independent non-executive director, was appointed Interim Chairman with immediate effect, replacing the previously announced plan to appoint a new Chairman and the Company will seek to appoint a Chairman in the near term. To enhance financial discipline, the Board and C-suite implemented cost-saving measures, including a 30% reduction in the cash component of their salaries for six months, with intentions to settle these amounts via equity subscriptions. Directors The Directors of the Company that served during the year were as follows: Andrew Dennan Jean-Michel Doublet David Bullion (appointed 3 June 2024) Edouard Etienvre (appointed 23 June 2024) Marco Fumagalli (resigned 13 May 2024) Malcolm Graham-Wood (resigned 31 May 2024) James Parsons (resigned 3 June 2024) Relevant details of the Directors, which include committee memberships, are set out on page 27. Ascent Resources plc Annual Report and Financial Statements 2024 | 24 Directors’ interests The beneficial and non-beneficial interests in the issued share capital of the Company were as follows: Ordinary shares of 0.5p each At 31 December 2024 At 31 December 2023 Andrew Dennan 2,690,000 2,140,000 Jean-Michel Doublet – – David Bullion (appointed 3 June 2024) – – Edouard Etienvre (appointed 23 June 2024) – – Malcolm Graham-Wood (resigned 31 May 2024) – – Marco Fumagalli (resigned 13 May 2024) – – James Parsons (resigned 3 June 2024) – 500,900 Directors’ emoluments Details of Directors’ share options and remuneration are set out in the Remuneration Committee report on pages 40 & 41. Third party indemnity provision The Company has provided liability insurance for its Directors. The annual cost of the cover is not material to the Group. The Company’s Articles of Association allow it to provide an indemnity for the benefit of its Directors which is a qualifying indemnity provision for the purposes of the Companies Act 2006. Share capital Details of changes to share capital in the period are set out in Note 18 to the Financial Statements. As at 31 March 2025 the Company has been notified of the following significant interests in its ordinary shares, being a holding of 3% and above: Number of ordinary shares % MBD Partners SA 47,857,143 15.51% CB Energy VI 33,181,304 10.75% American Helium Holdings 16,850,000 5.46% Horrocks Family 14,856,400 4.81% Interactive Brokers 12,114,633 4.06% Catalyse Capital 11,171,014 3.62% 1222 Holdings 10,800,000 3.50% Shareholder communications The Company’s website, www.ascentresources.co.uk provides a platform for the purposes of improving information flow to shareholders, as well as potential investors. Employees The Company’s Board composition provides the platform for sound corporate governance and robust leadership in implementing the Company’s strategies to meet its stated goals and objectives. The Group’s employees and consultants play an integral part in executing its strategy and the overall success and sustainability of the organisation. The Group has a highly skilled and dedicated team of employees and consultants and places great emphasis on attracting and retaining quality staff. Ascent Resources plc Annual Report and Financial Statements 2024 | 25 The Group holds its employees and consultants at all levels to high standards and expects the conduct of its employees to reflect mutual respect, tolerance of cultural differences, adherence to the corporate code of conduct and an ambition to excel in their various disciplines. Disclosure of information to auditors In the case of each person who was a Director at the time this report was approved: • so far as that Director was aware there was no relevant audit information of which the Company’s auditors were unaware; and • that Director had taken all steps that the Director ought to have taken as a Director to make himself aware of and relevant audit information and to establish that the Company’s auditors were aware of that information. This information is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. Going Concern The Financial Statements of the Group are prepared on a going concern basis as detailed in Note 1 to the financial statements. The Group and Company financial statements have been prepared under the going concern assumption, with a material uncertainty give the Company needs to raise additional funds in the near term. The Company raised US$1.7 million (£1.36 million) in April 2024 via an equity fundraise and loan note issue. The loan note issue was through the Company entering into a new US$2 million (£1.62 million) senior secured fixed coupon loan facility with institutional investor, Riverfort Global Opportunities PPC Ltd, of which US$1 million was drawn down. The raise enabled the Company to invest, by way of a convertible loan, US$1 million (£0.81 million) with GNG Partners and build the Company’s new strategy. In September 2024 the Company raised gross proceeds of US$1 million (£0.76 million) by issuing shares to CB Energy VI LLC, an investment vehicle focused on making strategic oil and gas and infrastructure investments. The net proceeds of the raise were used for continued business development and general corporate and administrative expenses. Post period under review, in May 2025, the Company announced the conditional acquisition of 49% of the Colorado based oil and gas leases operated by Locin Oil Corporation and a 10% interest in the Utah based oil and gas leases operated by ARB Energy. These leases include producing reserves as well as significant prospective resources and the Company has also agreed with ARB Energy that Ascent shall receive 50% of the incremental production generated from existing wells by investing in the installation of artificial lift technologies on the well heads. At the same time the Company also announced that it has completed a new equity fundraising raising gross proceeds of £1.35 million (US$1.8 million) at 0.5 pence per new ordinary share with a one for two warrant attached to the subscription shares, exercisable at 1 pence per new warrant share. The proceeds are to be used to redeem £225,000 (US$300,000) of the RiverFort senior debt, £100,000 for initial investment in artificial lift installations on the newly acquired ARB Energy acreage and for corporate general and administrative costs. The Company also announced cost reduction measures, including Directors and C-suite agreeing to reduce the cash cost of their remuneration packages by 30% and expecting to subscribed for these owed amounts in new equity on the same terms as the £1.35 million placing as soon as they are out of a close period and able to do so. Under the Group’s forecasts, the funds raised together existing bank balances, with the addition of the newly acquired interest in producing acreage and funds to invest in an artificial lift installation campaign as well as the cost savings initiative being implemented are expected to provide sufficient funding for twelve months as at the date of this report. Ascent Resources plc Annual Report and Financial Statements 2024 | 26 In addition to the need to raise additional funding in the second half of 2025, the forecasts are sensitive to the timing and cash flows associated with the continuing situation in Slovenia, and discretionary spend incurred with executing the strategy to grow the US onshore gas and helium. As such, the Company will need to raise new capital within the forecast period to fund such discretionary spend. Negotiations with potential new investors is ongoing and based on historical and recent support from new and existing investors the Board believes that such funding, if and when required, could be obtained through new debt or equity issuances. However, the ability to raise these funds is not guaranteed at the date of signing these financial statements. As a consequence, there is a material uncertainty to the going concern of the Group. Auditors In accordance with Section 489 of the Companies Act 2006, a resolution for the reappointment of PKF Littlejohn LLP as auditors of the Company is to be proposed at a General Meeting to be held prior to 30 June 2025. Approved for issue by the Board of Directors and signed on its behalf Andrew Dennan Chief Executive Officer Dated: 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 27 Andrew Dennan Chief Executive Officer/Executive Director (5 May 2020 to present) Andrew has a wealth of corporate finance, merger, asset funding and corporate transaction experience on AIM. Throughout his career he has been involved in stockbroking and asset management in prominent roles, leading proprietary investment decisions, capital raising, risk oversight and portfolio management. He was formerly Chief Financial Officer and Director of Coro Energy Plc. Andrew holds the CFA Investment Management Certificate and has a BA (Hons) in Actuarial Science from City University. David Bullion Non-Executive Director (3 June 2024 to present) David has over 30 years’ experience in the oil and gas industry. He is currently CIO of American Helium and CEO of GNG Partners LLC, with whom the Company has an investment with. David previously spent 20 years with BP, holding various senior positions spanning the globe. Edouard Etienvre Independent Non-Executive Director (23 June 2024 to present) Edouard Etienvre is a seasoned executive with over 18 years of experience in the natural resources sector initially with banking (reserve-based lending) and more recently with private and public E&P companies as well as commodities trading, shipping and infrastructure companies. Edouard has extensive project management, risk assessment, commercial, business development and financial expertise. Edouard holds a MSc in Management from KEDGE Business School and is a non-executive director of ADX Energy Limited (listed on the ASX) and Pathfinder Minerals Plc (listed on the LSE AIM). Jean-Michel Doublet Independent Non-Executive Director (21 November 2023 to present) Jean-Michel has over 25 years of international experience in corporate finance, with strong M&A experience, working notably with independent oil and gas companies, focussing on emerging markets. Jean-Michel was appointed interim Chairman of the Company on 22 May 2025. Board of Directors Ascent Resources plc Annual Report and Financial Statements 2024 | 28 Corporate Governance Statement Since the previous chairman left in the summer of last year I have worked to lead the Company forward and help ensure that the Company continues to maintain both sound corporate governance and an effective Board. During the period of transition my responsibilities have included leading the Board effectively, overseeing the Group’s corporate governance model, communicating with shareholders and ensuring that good information flows freely with the Non-Executive Directors in a timely manner. My role has been to steer the ship during this period between chairs, and post period under review as I have elected to retire as Director and CEO. David Patterson is expected to be appointed as CEO and Jean Michel Doublet has assumed the role as Interim Chairman whilst the Company seeks to appoint a new Chairman. The Company has adopted the Quoted Companies Alliance Corporate Governance (QCA Code), which requires AIM-quoted companies to adopt a ‘comply or explain’ approach in respect of the application of guidance contained within. The Company is transitioning to the new 2023 Code (the ‘2023 QCA Code’), which will be adopted in respect of the financial year ended 31 December 2025, and is compliant with some areas. With the recent changes within the business, both in terms of strategy and leadership, the Board will continue to progress its compliance under the 2023 QCA Code and has set out in its disclosures on pages 30 to 32 of the Annual Report, including those areas of non-compliance, with explanations. The Board believes that corporate governance is a framework which underpins the core values for running the business, including a commitment to open and transparent communications with stakeholders. We believe that good corporate governance improves long-term success and performance. The corporate governance framework within which Ascent operates, including Board leadership and effectiveness, Board remuneration and internal control is based upon practices which the Board believes are proportional to the size, risks, complexity and operation of the business. 2024 has been a year of accelerating progress with, as I described in my CEO’s Statement, our investment with GNG Partners LLC, giving the option to convert a stake into the Lisbon Valley gas processing and helium processing facility in Utah. The investment into the Americas was further enhanced by the acquisition in December 2024 of a 49% interest in 119,000 acres of helium rich leases in Utah and Colorado from American Helium. With regards to the Company’s position in Slovenia, the appointed Administrator unilaterally terminated the Restated joint Operating Agreement in January 2024, marking the end of the Company’s operational presence in Slovenia but not the pursuit of the value of our EUR11m claim in the insolvency proceedings of Geoenergo. Similarly, progress has been seen with our Energy Charter Treaty damages claim against the Republic of Slovenia. The arbitration hearing completed on 11 April 2025 and the Company awaits decision by the Tribunal, remaining confident in our claim. In early 2024 the Company distributed 49% of its economic interest of any net proceeds received by the Company to shareholders in respect of the claim, this was following by a further 41% distribution to shareholders in early 2025. Engaging with our shareholders remains vitally important and we ensure that there are opportunities for investors to engage with the Board and the executive team. There has been significant change to the Board during 2024 and further changes into 2025. As stated the Company expects to appoint a Chairman in the near term and in the interim Jean Michel-Doublet, independent non-executive director has assumed the role of Interim Chairman. As a result the Company will comprise an Interim Non-Executive Chairman, Chief Executive Officer and two non-executive directors, of which one is considered independent. Corporate Governance Report Ascent Resources plc Annual Report and Financial Statements 2024 | 29 On 23 April 2024, the Company announced that Malcolm Graham-Wood and Marco Fumagalli would be retiring from the Board by the end of May 2024. James Parsons stepped down as Executive Chair in June 2024, at which time David Bullion joined as a non-executive director and Edouard Etienvre as an independent non-executive director of the Company. In June 2025 Andrew Dennan will step down as CEO and, subject to satisfactory regulatory checks, David Patterson will assume the role of CEO and join the Board. The Company continues to monitor the performance of the Board, ensuring that the required skill set and balance of independent non-executive directors is present. Whilst the Company has not undertaken a formal Board evaluation in recent years there is on-going consideration given by the Board to ensure the requirements of the business are met by the Board and its performance. The Board is committed to leading the business in a way which is honest, transparent and accountable. Andrew Dennan Chief Executive Officer Dated: 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 30 Quoted Companies Alliance Corporate Governance Code The 2023 QCA Code is the Company’s chosen corporate governance code to comply with. The newly published 2023 QCA Code applies to financial years commencing on or after 1 April 2024. The 2023 QCA Code, which retains the structure of the previous QCA Code (2018 Code), has evolved to keep pace with investor expectations, particularly around ESG, internal controls, board composition and director remuneration. The Board firmly believe that the QCA Code is the most appropriate corporate governance code for the Company to comply with and is working towards compliance with the 2023 QCA Code. The Company’s statement in relation to the QCA Corporate Governance code can be found on the Company’s website at https://wp-ascentresources-2021.s3.eu-west-2.amazonaws.com/media/2024/02/2024.02.29_ Ascent-QCA-disclosure.pdf QCA Code Principle Required Disclosure Reference One Establish a purpose, strategy and business model which promote long-term value for shareholders. The Company’s purpose is to contribute responsibly towards meeting the US energy needs through the safe and efficient production of hydrocarbons with a preference for natural gas as the transitional fuel of choice. See the Strategic report on pages, 7 to 18 of the Annual Report. See website disclosures at the above link. Two Promote a corporate culture that is based on ethical values and behaviours The corporate culture is established within the Board of directors and delivered by the CEO. As there is a small team of employees this is done informally through regular meetings and engagement. Three Seek to understand and meet shareholders needs and expectations. The Company engages with its stakeholders regularly, through regulatory news flow, year end and half year results announcements, the Annual General Meeting and other general meetings as required. The CEO meets regularly with major shareholders. Updates are also given through LinkedIn. The Company engaged with shareholders in 2024 and again in early 2025 to seek their approval to make a distribution of the ECT claim. See page 33 ‘Communication with Stakeholders’ of the Annual Report. Four Take into account wider stakeholder interest, including social and environmental responsibilities, and their implication for long-term success. s172 Report on pages 10 to 13 identifies the Company’s key stakeholders and the feedback in place to solicit feedback. The Company has good relations with different stakeholder groups and seeks to foster these. As the Company develops its strategy work will be taken to ensure that the Company understands it stakeholders expectation and concerns around ESG. The Company has in place a whistleblowing policy and has appointed the chair of the audit committee as Whistleblowing officer. Five Embed effective risk management, internal controls and assurance activities, considering both opportunities and threats, throughout the organisation. The Company’s approach and identification of risks are set out on pages 14 to 18 of the Annual Report. Risks are reviewed at the Audit Committee, Board and Executive level. Ascent Resources plc Annual Report and Financial Statements 2024 | 31 Six Establish and maintain the Board as a well-functioning, balanced team led by the Chair Information on each of the directors as at 28 May 2025 is provided on page 27. Details are also included on the Company’s website. There has been significant change to the Board over the last eighteen months, with two new NEDs appointed during 2024. Each of the directors on the Board have considerable experience and the required skills to cover all the Boards requirements. As the business grows the Board will ensure that the composition continues to reflect the needs of the business. Any Board appointment considers the requirements of the Board, the skills of the individual, including giving consideration to diversity and inclusion. As at 28 May 2025 the Board comprises of four directors, the CEO and three non-executive directors, of which two, Jean-Michel Doublet and Edouard Etienvre, are considered to be independent in terms of judgement and character. Jean Michel Doublet has assumed the role of Interim Chairman. The CEO is expected to devote substantially all of his time to the Company. The Non-Executive Directors are expected to devote approximately two days a month to the Company. The NEDS do not receive any performance related remuneration. Given the stage in the Company’s development and the newly formed Board it is felt that it would not be to the benefit of the Company for all directors to stand for re-election at the AGM. The directors will therefore stand as per the requirements of the Company’s Articles. See page 32 ‘Board composition’ of the Annual Report. Seven Maintain appropriate governance structures and ensure that individually and collectively the directors have the necessary up to date experience, skills and capabilities The directors are provided with an AIM briefing by the Company’s Nominated Advisor as part of their onboarding. Annual Anti Bribery and Corruption training is carried out. Advice is sort throughout the year as and when required. The Company Secretary and Nomad keeps the Board briefed on relevant matters, which includes the Board receiving the Company Secretaries quarterly newsletter. The Company’s lawyers / Nomad will attend and deliver updated to the Board if and when required. The Audit Committee assists the Board in overseeing the financial reporting and ensuring the independence of the Company’s auditor. The Remuneration Committee meets to consider all material elements of Remuneration, including agreeing service contracts and termination arrangements of directors. The Company’s HSE Committee meets as and when required. Details of the terms of reference of the Committees can be found on the Company’s website. The Board reviewed its Matters Reserved for the Board during 2024. The Committee terms of reference will be reviewed during 2025. During 2024 the Board sought external legal advice in respect of the legal action against the Republic of Slovenia. The Committees did not need to seek external advice during 2024. Eight Evaluate Board performance based on clear and relevant objectives, seeking continuous improvement The Board has not conducted a formal external review in recent years. The directors are aware of the QCA 2023 Code that a Board evaluation should be carried out annually. Given the significant changes to the Board in recent times it has not felt appropriate. The Board plans to carry out an evaluation in late 2025, once the Board has had time to establish and work together for a period of time. Succession planning is considered by the as a whole and there have been significant changes in the last eighteen months. Ascent Resources plc Annual Report and Financial Statements 2024 | 32 Nine Establish a Remuneration Policy which is supportive of long term value creation and the Company’s purpose, strategy and culture. The Company is working towards compliance of the QCA 2023 Code and in time will put its Remuneration Report and Remuneration Policy to shareholders on an advisory vote. Ten Communicate how the Company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders. See Corporate Governance Report on pages 28 to 35 of the Annual Report, See website disclosures above link and disclosures under AIM Rule 26. The Audit Committee report is on page 36 of the Annual Report. The Remuneration Committee report is on page 38 of the Annual Report. The Company is currently transitioning to the QCA 2023 Code and as yet has not complied with all the Principles in full, although it has made disclosures on each Principle. Governance Structure Board Composition Membership of the Board and information on each member can be found in the Directors’ Report. Andrew Dennan, Chief Executive Officer Andrew Dennan is the Chief Executive Officer and has overall responsibility for managing the day-to-day operations of the Company and is responsible for implementing the Company’s strategy. As announced Mr Dennan will step down from the Board at the AGM and, subject to regulatory checks, David Patterson will join the Company as CEO. Non-Executive Chairman As announced in May 2025, post period under review, Gilles Thieffry will no longer be joining the Board as non-executive chairman, the Company is seeking to appoint a new Chairman. However, in the immediate term Jean-Michel Doublet has been appointed as interim chairman. Skills and competencies of the Board The Board has a suitable mix of skills and competencies in order to drive the Group’s strategy and is best placed to secure the future of the Company and create long-term value for all stakeholders. The Board has significant industry, financial, public markets and governance experience, possessing the necessary mix of experience, skills, personal qualities and capabilities to deliver the strategy of the Company for the benefit of the shareholders over the medium to long-term. The Board updates its operational skills through active involvement in the industry. In addition, the Board keeps abreast of ongoing changes relating to governance and compliance, the AIM Rules for companies, QCA Code, the UK Market Abuse Regulations and other statutory and regulatory developments. All directors have access to the Company’s Nomad, Company Secretary, lawyers and auditors and are able to obtain advice from other external bodies as and when required. The Company embraces diversity and is dedicated to encouraging inclusion without compromising professionalism, experience and expertise. The Board is supported by its Audit Committee, Remuneration Committee, Technical & Reserves Committee and HSE Committee. The number of Board and Committee meetings held throughout the course of the financial year is set out at the end of this Corporate Governance Report. The Board firmly believes that sustained success will best be achieved by adhering to our corporate culture of treating all our stakeholders, including our employees, fairly and with respect. Accordingly, in dealing with each Ascent Resources plc Annual Report and Financial Statements 2024 | 33 of the Company’s principal stakeholders, we encourage our staff to operate in an honest and respectful manner. This is monitored on an ongoing basis by the Company’s executive director. Compliance with this principle is considered an important part of the annual assessment of staff and in setting their pay for future periods. Communications with stakeholders The Board places a high priority on transparent and effective communications with shareholders. As an AIM listed company there is a need to provide fair and balanced information in a way that is understandable to all stakeholders. The Board recognises the importance of engaging with all stakeholders including employees, investors, partners, suppliers, media and communities. The primary communication tool with our shareholders is the Company’s website, https://www.ascentresources.co.uk. The shareholders are also kept up to date through Regulatory News Service, (“RNS”) on regulatory matters and matters of material substance. The Company reports formally to its shareholders and the market twice each year with the release of its interim and full year results. The Company’s Annual Report and Notice of Annual General Meetings (AGM) are published for all shareholders. These reports contain full details of all the principal events of the relevant period together with an assessment of current trading and future prospects. The Reports together with other investor presentations are also available on the website. The Company has full electronic communications in place, so that shareholders (unless they elect otherwise) will have access to communications through the Company’s website. A much more effective and environmentally friendly way of interacting with shareholders. Upon conclusion of Shareholder meetings arrangements are made that the outcomes of votes cast by shareholders can be disclosed in a clear and transparent manner. If a significant proportion of votes (20%+) was ever cast against a resolution, the Company would provide, on a timely basis, an explanation of what actions it intends to take to understand the reasons behind that vote result, and, where appropriate, any different action it has taken, or will take, as a result of the vote. Committee chairs are available at the Annual General Meeting to answer questions regarding the activities of their committees. Board and committee meetings The Board holds five scheduled board meetings throughout the year and ad-hoc calls are scheduled as and when the business demands. Attendances of Directors at board and committee meetings convened in the year, and which they were eligible to attend, are set out below: Director Board Meetings (12 in total – scheduled & ad-hoc) Remuneration Committee (2 in total) Audit Committee (4 in total) Number of meetings in year – Attendance Andrew Dennan 12 – – David Bullion (appointed 3 June 2024) 5 – – Jean-Michel Doublet 12 1 2 Edouard Etienvre (appointed 23 June 2024) 5 1 1 Malcolm Graham-Wood (resigned 31 May 2024) 6 1 2 Marco Fumagalli (resigned 13 May 2024) 5 1 3 James Parsons (resigned 3 June 2024) 7 – – Ascent Resources plc Annual Report and Financial Statements 2024 | 34 Committees of the Board The Committees of the Board comprise of non-executive directors. Audit Committee The membership of the Audit Committee during 2024 initially comprised Marco Fumagalli (chair) and Malcolm Graham-Wood. Following Marco’s resignation, Malcolm assumed the role of chair and Jean-Michel Doublet joined the Committee. Upon Malcolm’s resignation Edouard Etienvre joined as chair of the Committee. The Audit Committee determines and examines any matters relating to the financial affairs of the Group including the terms of engagement of the Group’s auditors and, in consultation with the auditors, the scope of the audit. The Report of the Audit Committee for 2024 is set out on page 36. Remuneration Committee The membership of the Remuneration Committee during 2024 comprised of Malcolm Graham-Wood (chair) and Marco Fumagalli. Following Marco and Malcolm’s departure, Jean-Michel Doublet and Edouard Etienvre joined the Committee, Jean-Michel was appointed chair. The Remuneration Committee is responsible for reviewing the performance of the Executive directors, for setting the scale and structure of their remuneration, paying due regard to the interests of shareholders and the performance of the Group. It also reviews the performance of the senior management, sets and reviews their remuneration and the terms of their service contracts and considers the Group’s bonus and option schemes, determining targets for any performance- related pay schemes operated by the Company. The Report of the Remuneration Committee for 2024 is set out on pages 38 to 41. The terms of reference of the Audit Committee and the Remuneration Committee are set out on the Company website. The appropriateness of the Group’s governance structures will be reviewed annually in light of further developments of accepted best practice and the development of the Company. HSE Committee The HSE Committee meets as and when required. It did not meet in 2024. HSE matters were discussed, as required, by the Board as a whole during the year. Technical and Reserves Committee The Technical and Reserves Committee meets as and when required. It did not meet in 2024. Technical matters were discussed, as required, by the Board as a whole during the year. Internal controls The Board acknowledges responsibility for maintaining appropriate internal control systems and procedures to safeguard the shareholders’ investments and the assets, employees and the business of the Group. The Board has established and operates a policy of continuous review and development of appropriate financial controls together with operating procedures consistent with the accounting policies of the Group. Internal audit The Board does not consider it appropriate for the current size of the Group to establish an internal audit function. Ascent Resources plc Annual Report and Financial Statements 2024 | 35 Bribery and corruption The Bribery Act 2010 came into force on 1 July 2011. The Company is committed to acting ethically, fairly and with integrity in all its endeavours and compliance with legislation is monitored. The Company has a zero- tolerance approach to bribery and corruption and has an anti-bribery policy in place to protect the Company, its employees and those third parties to which the business engages with. The directors and employees of the Company received training on this subject in 2024. Ascent Resources plc Annual Report and Financial Statements 2024 | 36 Audit Committee Report Committee composition Currently the members of the Committee are Edouard Etienvre, Chair, and Jean-Michel Doublet. The membership of the Audit Committee during 2024 initially comprised of Marco Fumagalli (chair) and Malcolm Graham-Wood. Following Marco’s resignation, Malcolm assumed the role of chair and Jean-Michel Doublet joined the Committee. Upon Malcolm’s resignation Edouard Etienvre joined as chair of the Committee. The role of the Audit Committee includes: • Financial reporting – ensure the integrity of the financial statements including the annual and interim reports. • Internal controls and Risk Management Systems – review the effectiveness of internal controls and risk management systems. • Review the need for an internal audit function. • Monitor and review the external audit, including their independence. • To review the annual audit plan. • To approve fees in respect of non-audit services. Terms of reference of the Audit Committee are available on the Company’s website. During 2024 the Audit Committee met four times including to review and approve the 2023 year-end financial results and the 2024 interim results. The terms of reference of the Committee were reviewed during the year. The Committee met with the Auditor without Management present, there were no issues of concern raised. Key matters considered • The valuation report setting out the valuation basis of the shares Ascent Claim Entitlement SPV Limited would pay in consideration to the Company, in new shares, in the event of a successful Energy Charter Treaty claim against the Republic of Slovenia. • Assessment of going concern forecasts and associated disclosures. • Reports of the external auditor concerning its audit and review of the financial statements of the Group. • Corporate governance practice and disclosure • Risk Register • Accounting Policies • Annual Report and letter of representation • Interim Results Ascent Resources plc Annual Report and Financial Statements 2024 | 37 2025 Plans Consider the Audit Finding Report Review for recommendation to the Board the year end 2024 Results and the letter of representation Review for recommendation to the Board the 2025 Interim Results Review the risk register Accounting policies External Auditors The external auditors, PKF Littlejohn LLP were re-appointed in 2024 at the Company’s AGM. Approved for issue by the Board of Directors and signed on its behalf: Edouard Etienvre Chair of the Audit Committee Dated: 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 38 Remuneration Committee Report Currently the members of the Committee are Jean-Michel Doublet, Chair, and Edouard Etienvre. The membership of the Remuneration Committee during 2024 comprised of Malcolm Graham-Wood (chair) and Marco Fumagalli. Following Marco and Malcolm’s departure, Jean-Michel Doublet and Edouard Etienvre joined the Committee, Jean-Michel was appointed chair. The Committee is responsible for reviewing the performance of the executive directors, for setting the scale and structure of their remuneration, paying due regard to the interests of shareholders and the performance of the Group. It also reviews the performance of the senior management, sets and reviews their remuneration and the terms of their service contracts and considers the Group’s bonus and option schemes, determining targets for any performance-related pay schemes operated by the Company. The Remuneration Committee has amongst its main functions the review of the structure, size and composition of the Board based upon the skills, knowledge and experience required to ensure that the Board operates efficiently and effectively. It will also identify and nominate suitable candidates to the join the Board when vacancies arise and make recommendations to the Board for the re-appointment of directors. Given the size of the Company the Board do not feel that it is necessary at present to have a separate Nominations Committee and currently matters relating to nominations are dealt with by either the Remuneration Committee or the Board as a whole. The Remuneration Committee will keep the remuneration of the executive directors and members of the executive team under review and ensure that they are remunerated at the right levels taking into account delivery of strategy and growth of the business. The Committee will seek external advice if necessary. The terms of reference of the Remuneration Committee are set out on Ascent’s website. The Committee met twice during 2024. Key Matters Considered Review of 2023 scorecard Consideration of 2023 bonus awards Consideration of 2024 pay awards Approval of 2024 scorecard ECT claim – review and approve the options under the Ascent Claim Entitlement SPV Limited in the event of a successful Energy Charter Treaty claim against the Republic of Slovenia Chairman’s contract The significant Board changes during the year were considered by the Board as a whole. 2025 Plans Review of 2024 scorecard Consideration of 2024 bonus awards Consideration to 2025 pay awards Approval of 2025 scorecard Ascent Resources plc Annual Report and Financial Statements 2024 | 39 Review of the Remuneration Policy Review Committee terms of reference Remuneration policy The Group’s and the Company’s policy is to provide remuneration packages that will attract, retain and motivate its executive directors and senior management. This consists of a basic salary, ancillary benefits and other performance-related remuneration appropriate to their individual responsibilities and having regard to the remuneration levels of comparable posts. The Remuneration Committee determines the contract term, basic salary, and other remuneration for the members of the Board and the senior management team. Executive Directors – Remuneration package The Company offers a remuneration package which consists of basic salary, discretionary bonus payments, share options or other incentive plan awards and a pension to Executive Directors. The level of bonus is based on individual performance and that of the Group as a whole. A Company scorecard with performance targets, which are set by the Remuneration Committee, is agreed and upon which the level of bonus award is judged. The scorecard is set at the beginning of the year and reviewed mid-year and at the end of the year. The target bonus range is up to 100% of base salary. The executive directors have a six month notice period and upon change of control would receive a payment equivalent to 18 months base salary. Non - Executive Directors – Fees The Company pays non-executive directors fees which are set at a level in line with market and appropriate to the size of the business. Fees are paid monthly in cash and include the payment for chairing a Board Committee. Ascent Resources plc Annual Report and Financial Statements 2024 | 40 Remuneration of Directors The following remuneration table comprises Directors’ salaries and benefits in kind that were payable to Directors who held office during the year ended 31 December 2024: Executive Directors 2024 Salary/fees £ Accrued Termination fee £ Pensions £ Benefits in Kind £ Fees paid in shares £ Total £ J Parsons (resigned 3 June 2024) 107,700* 25,000 – 6,956 21,049*** 160,705 A Dennan 273,348** – 19,167 5,065 – 297,580 Total 381,048 25,000 19,167 12,021 21,049 458,285 * James Parsons received a gross annual base salary of £150k plus an 8% pension that was paid in cash as part of his monthly salary. ** Andrew Dennan was paid a gross salary of £250,000 for the year. Of the £250,000, £10,416 was accrued at the year end and paid post year end. £23,349 has been included for underpaid pension amounts. *** James Parsons had £21,049 fees paid in shares, of which £5,499 has been accrued for as it relates to fees paid post year end. Non-Executive Directors Salary/fees £ Accrued fees £ Bonus £ Pensions £ Benefits in Kind £ Total £ J-M Doublet 31,700 1,458 – 23 – 33,181 M Graham-Wood (resigned 31 May 2024) 14,583 – – – – 14,583 M Fumagalli (resigned on 13 May 2024) 14,583 – – – – 14,583 D Bullion (appointed 3 June 2024) 16,250 1,250 – – – 17,500 E Etienvre (appointed 23 June 2024) 16,715 1,458 – – – 18,173 Total 93,831 4,166 – 23 – 98,020 * There were no bonuses awarded for 2024. The highest paid director during the year was Andrew Dennan. The following remuneration table comprises Directors’ salaries and benefits in kind that were payable to Directors who held office during the year ended 31 December 2023: Executive Directors 2023 Salary/fees £ Bonus £ Pensions £ Benefits in Kind £ Total £ J Parsons 150,000 – 12,000 6,297 168,297 A Dennan 250,000 – 20,000 5,224 275,224 Total 400,000 0 32,000 11,521 443,521 Non-Executive Directors Salary/fees £ Bonus £ Pensions £ Benefits in Kind £ Total £ S Birrell (resigned on 24 October 2023) 37,378 – – – 37,378 J-M Doublet (appointed on 21 November 2023) 3,423 – – – 3,423 M Graham-Wood 35,000 – – – 35,000 M Fumagalli (resigned on 13 May 2024) 35,943 – – – 35,943 Total 111,744 – – – 111,744 Ascent Resources plc Annual Report and Financial Statements 2024 | 41 The following table sets out the Directors’ incentive share options awarded to directors who held office at 31 December 2024: Exercise Period 2024 Opening Granted / (Lapsed) Closing Date Granted Share Price at Grant Exercise Price Start End J Parsons 1,385,894 – 1,385,894 05.03.2020 £0.045 £0.05 05.03.2023 28.02.2025 1,500,000 1,500,000 11.11.2022 £0.045 £0.05 11.11.2025 28.02.2025 A Dennan 1,385,894 – 1,385,894 14.04.2020 £0.034 £0.05 13.04.2023 13.04.2025 1,500,000 1,500,000 11.11.2022 £0.045 £0.05 11.11.2025 11.11.2027 M Graham-Wood 500,000 (500,000) – 11.11.2022 £0.045 £0.05 11.11.2025 31.05.2024 The following table sets out the Directors’ incentive share options awarded to directors who held office at 31 December 2023: Exercise Period 2023 Opening Granted / (Lapsed) Closing Date Granted Share Price at Grant Exercise Price Start End J Parsons 1,385,894 – 1,385,894 05.03.2020 £0.045 £0.05 05.03.2023 04.03.2025 1,500,000 1,500,000 11.11.2022 £0.045 £0.05 11.11.2025 11.11.2027 A Dennan 1,385,894 – 1,385,894 14.04.2020 £0.034 £0.05 13.04.2023 13.04.2025 1,500,000 1,500,000 11.11.2022 £0.045 £0.05 11.11.2025 11.11.2027 M Graham-Wood 500,000 – 500,000 11.11.2022 £0.045 £0.05 11.11.2025 11.11.2027 The following table sets out the Directors’ share options awarded to directors, and former directors, in Ascent Claim Entitlement SPV, which will be exercisable in the event of a successful award under the ECT Claim at 31 December 2024: Exercise Period 2024 Opening Granted / (Lapsed) Closing Date Granted Share Price at Grant Exercise Price Start End J Parsons – 2,885,894 2,885,894 06.03.2024 £0.0132 £0.005 06.03.2024 06.03.2044 A Dennan – 2,885,894 2,885,894 06.03.2024 £0.0132 £0.005 06.03.2024 06.03.2044 Approved for issue by the Board of Directors and signed on its behalf: Jean-Michel Doublet Chair of the Remuneration Committee Dated: 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 42 Statement of Directors Responsibilities The Directors are responsible for preparing the Annual Report in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group and Company financial in accordance with UK-adopted international accounting standards and, as regards the Company financial statements, as applied in accordance with the requirements of the Companies Act 2006. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. The Directors are also required to prepare financial statements in accordance with the rules of the London Stock Exchange for companies trading securities on the AIM Market. In preparing these financial statements the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • state whether they have been prepared in accordance with UK-adopted international accounting standards, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Website publication The Directors are responsible for ensuring the Annual Report and the Financial Statements are made available on a website. Financial statements are published on the Company’s website (www.ascentresources.co.uk) in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the Financial Statements contained therein. Ascent Resources plc Annual Report and Financial Statements 2024 | 43 Independent Auditors Report Opinion We have audited the financial statements of Ascent Resources plc (the ‘parent company’) for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated and Company Cash Flow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards. In our opinion: • the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2024 and of the group’s loss for the year then ended; • the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; • the parent company financial statements have been properly prepared in accordance with UK-adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw attention to note 1 in the financial statements, which indicates that the group will require further funds to be raised over the next 12 months in order for the group and parent company to fund working capital requirements and continue to advance its operations. As stated in note 1, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s and parent company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going concern basis of accounting included: • Reviewing cashflow forecasts and budgets prepared by management to 31 May 2026; • Challenging the key assumptions contained in the forecasts with reference to historic data and external evidence and evaluating the feasibility of management’s plans for future actions in relation to its going concern assessment; Ascent Resources plc Annual Report and Financial Statements 2024 | 44 • Performing a comparison of actual results for the year to past budgets to assess the reliability of such forecasts; • Reviewing post-year end events impacting on going concern and corroborating where applicable; and • Reviewing the adequacy of the disclosures in respect of going concern. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Our application of materiality The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Based on our professional judgement, we determined the materiality thresholds for the financial statements as follows: Entity Overall Materiality Performance Materiality Basis Group £15,000 (2023: £54,000) £10,000 (2023: £37,000) 3% of net assets (2023: 10% loss before tax) Parent company £8,000 (2023: £50,000) £5,000 (2023: £35,000) 3% of net assets (capped below group materiality) (2023: 10% loss before tax) The benchmark for group and parent company materiality was selected as 3% of net assets. In the prior year, the group had fully impaired its exploration and producing oil and gas assets to £Nil, and therefore loss before tax was considered more appropriate than an asset-based measure. In the current year, the group and parent company hold significant assets as a result of the acquisition of a direct interest in a portfolio of oil and gas licences and therefore net assets basis was considered to be the most appropriate benchmark for users of the financial statements. Whilst materiality for the group financial statements as a whole was set at £15,000 (2023: £54,000), material components of the group were audited to a level of performance materiality ranging between £5,000 - £9,000 (2023: £7,000 - £35,000). Performance materiality for the group and parent company was set at 70% (2023: 70%) to ensure sufficient coverage of key balances. We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. At the planning stage materiality is used to determine the financial statement areas that are included within the scope of our audit and the extent of sample sizes during the audit. We agreed with management that we would report to the Audit Committee all individual audit differences identified during the course of our audit in excess of £500 (2023: £2,700) for the financial statements as a whole and £400 (2023: £2,500) for the parent company. We also agreed to report differences below these thresholds that, in our view, warranted reporting on qualitative grounds. Our approach to the audit Our group audit scope focused on the principal areas of operation being the UK and Slovenia. The Group holds six companies that are consolidated within these financial statements, two based in the UK and four based in Europe. We identified three material components, being the parent company, Ascent Resources Plc, Ascent Slovenia Limited, and Ascent Hispanic Ventures S.L. The former two were subject to a Ascent Resources plc Annual Report and Financial Statements 2024 | 45 full scope audit, and on the latter we performed audit procedures on certain account balances and classes of transaction. All work was performed by PKF Littlejohn LLP as group auditor. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section we have determined the matters described below to be the key audit matters to be communicated in our report. Key Audit Matter How our scope addressed this matter Accounting treatment and valuation of investment in US onshore gas, oil and helium portfolio (group and parent company) (Note 10) Ascent Resources Plc acquired a 49% interest in American Helium LLC’s Utah and Colorado upstream acreage on 20 December 2024 which includes direct interest in a proportionate share of 119,000 acres of helium rich oil and gas licences. The consideration consisted of $1.75m (GBP1.38m) in new Ascent shares issued at 5 pence per new share and $0.25m (GBP0.2m) in cash. Management is required to exercise their judgement in concluding on the appropriate classification of the assets acquired and this will depend on the current stage of development of the asset portfolio acquired. Management will also be required to exercise judgement in respect of the value at which the assets are recognised, given a substantial portion of the consideration is in shares. There is a risk that this transaction has not been accounted for correctly in the consolidated and parent company financial statements, both in terms of the classification and valuation of the assets recognised on the statement of financial position. As a result of the level of judgement required, and the magnitude of the transaction, we consider this to be a key audit matter. Our audit work in this area included: • Obtaining and reviewing the purchase and sale agreement and other relevant documents relating to the purchase of the portfolio and obtaining an understanding of the key terms, including the elements of consideration paid or to be paid and the nature of the assets acquired; • Agreeing cash consideration to bank, recalculating the fair value of the share consideration recorded and vouching to shares issued; • Obtaining management’s position paper in respect of the accounting treatment of the investment, including considerations of asset classification and valuation, and corroborating key assumptions to the underlying agreement or other sources as appropriate; • Holding discussions with management to provide appropriate challenge to assumptions used and conclusions reached; and • Reviewing accounting policies and disclosures in the financial statements to ensure compliance with relevant UK international accounting standards. Ascent Resources plc Annual Report and Financial Statements 2024 | 46 Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or • the parent company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. Responsibilities of directors As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Ascent Resources plc Annual Report and Financial Statements 2024 | 47 Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: • We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of audit knowledge and experience of the sector. We ensured that the audit team collectively had the appropriate experience with auditing entities within this industry, facing similar audit and business risks, and of a similar size. • We determined the principal laws and regulations relevant to the company in this regard to be those arising from: AIM Rules Companies Act 2006 Local tax laws and employment regulations • We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to: Making enquiries of management Reviewing Board Minutes Reviewing Regulatory News Service (RNS) Announcements Reviewing legal and regulatory correspondence and legal expenses Contacting the company’s lawyers and assessing the impact of ongoing legal disputes in Slovenia, and review of the adequacy of the related disclosures in the financial statements • We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that the estimates, judgements and assumptions applied by management in the assessment of going concern, and the accounting treatment of the acquisition of licences in American Helium, gave the greatest potential for management bias. The work performed in these areas are disclosed under the respective headings in this report. • As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Ascent Resources plc Annual Report and Financial Statements 2024 | 48 Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Imogen Massey (Senior Statutory Auditor) 15 Westferry Circus For and on behalf of PKF Littlejohn LLP Canary Wharf Statutory Auditor London E14 4HD 30 May 2025 Ascent Resources plc Annual Report and Financial Statements 2024 | 49 Notes Year Ended 31 December 2024 £’000s Year Ended 31 December 2023 £’000s Revenue 2 – 1,412 Cost of Sales 2 (26) (626) Depreciation of assets 10 (2) (1) Gross (loss)/profit (28) 785 Other income 2 3 363 Administrative expenses 3 (2,416) (1,960) Fair value gain on derivative liability 15 43 – Fair value loss on financial assets 9 (194) – Operating loss (2,592) (812) Finance income 9 73 – Finance cost 5 (207) (39) Net finance costs (134) (39) Loss before taxation (2,726) (851) Income tax expense 6 – – Loss for the year (2,726) (851) Other comprehensive income Exchange differences on translation of foreign operations 24 18 Total comprehensive income for the year (2,702) (833) Earnings per share Basic & fully diluted loss per share (Pence) 8 114.49 (49.74) The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. Consolidated Statement of Comprehensive Income For the year ended 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 50 Assets Notes 31 December 2024 £’000s 31 December 2023 £’000s Non-current assets Property, plant and equipment 10 710 3 Prepaid abandonment fund 12 – 262 Other debtors 9 677 – Prepayments 12 216 – Total non-current assets 1,603 265 Current Assets Trade and other receivables 12 415 323 Cash and cash equivalents 111 475 Total current assets 526 798 Total assets 2,129 1,063 Equity and liabilities Attributable to the equity holders of the Parent Company Share capital 18 8,989 8,495 Share premium account 18 79,703 77,889 Merger reserve 570 570 Share-based payment reserve 726 574 Other equity reserves 19 124 – Translation reserve (234) (258) Retained earnings (90,346) (87,648) Total equity attributable to the shareholders (468) (378) Total equity (468) (378) Non-current liabilities Provisions 14 1,019 690 Total non-current liabilities 1,019 690 Current liabilities Convertible loan notes 15 780 5 Borrowings 15 – 184 Derivative liability 15 13 – Trade and other payables 16 785 562 Total current liabilities 1,578 751 Total liabilities 2,597 1,441 Total equity and liabilities 2,129 1,063 The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. These financial statements were approved and authorised for issue by the Board of Directors on 30 May 2025 signed on its behalf by: Andrew Dennan Chief Executive Officer Consolidated Statement of Financial Position Company Number: 05239285 As at 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 51 Assets Notes 31 December 2024 £’000s 31 December 2023 £’000s Non-current assets Property, plant and equipment 10 710 3 Other debtors 9 677 – Prepayments 13 216 – Total non-current assets 1,603 3 Current Assets Trade and other receivables 13 480 355 Cash and cash equivalents 106 410 Total current assets 586 765 Total assets 2,189 768 Equity and liabilities Share capital 18 8,989 8,495 Share premium account 18 79,703 77,889 Merger reserve 570 570 Share-based payment reserve 21 651 573 Other equity reserves 19 124 – Retained loss (89,351) (87,446) Total equity 686 81 Non-current liabilities Provisions 14 – – Total non-current liabilities – – Current liabilities Convertible loan note 15 780 5 Intercompany payable 17 219 209 Borrowings 15 – 184 Derivative liability 15 13 – Trade and other payables 17 491 289 Total current liabilities 1,503 687 Total liabilities 1,503 687 Total equity and liabilities 2,189 768 As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company has not been separately presented in these accounts. The Company loss for the year was £1,933,000 (2023: loss of £1,483,000). The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. These financial statements were approved and authorised for issue by the Board of Directors on 30 May 2025 and signed on its behalf by: Andrew Dennan Chief Executive Officer 30 May 2025 Company Statement of Financial Position Company Number: 05239285 As at 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 52 Share capital £’000s Share premium £’000s Merger reserve £’000s Share base payment reserve £’000s Other equity reserves £’000s Translation reserve £’000s Retained earnings £’000s Total £’000s Balance at 1 January 2023 8,214 76,298 570 2,131 – (276) (88,457) (1,520) Comprehensive income Loss for the year – – – – – – (851) (851) Other comprehensive income Currency translation differences – – – – – 18 – 18 Total comprehensive income – – – – – 18 (851) (833) Transactions with owners Issue of ordinary shares 281 1,619 – – – – – 1,900 Costs related to share issues – (28) – – – – – (28) Share-based payments – charge – – – 103 – – – 103 Share-based payments – expired – – – (1,660) – – 1,660 – Total transactions with owners 281 1,591 – (1,557) – – 1,660 (1,975) Balance at 31 December 2023 8,495 77,889 570 574 – (258) (87,648) (378) Balance at 1 January 2024 8,495 77,889 570 574 – (258) (87,648) (378) Comprehensive income Loss for the year – – – – – – (2,726) (2,726) Other comprehensive income Currency translation differences – – – – – 24 – 24 Total comprehensive income 24 (2,726) (2,702) Transactions with owners Issue of ordinary shares 494 1,856 – – – – – 2,350 Costs related to share issues – (42) – – – – – (42) Equity component of convertible loan note – – – – 124 – – 124 Share-based payments – prior year correction – – – – – – 23 23 Share-based payments – charge – – – 157 – – – 157 Share-based payments – expired – – – (5) – – 5 – Total transactions with owners 494 1,814 – 152 124 – 28 2,612 Balance at 31 December 2024 8,989 79,703 570 726 124 (234) (90,346) (468) The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. Details of each reserve can be found on page 66. Consolidated Statement of Changes in Equity For the year ended 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 53 Share capital £’000s Share premium £’000s Merger reserve £’000s Share base payment reserve £’000s Other equity reserves £’000s Retained earnings £’000s Total £’000s Balance at 1 January 2023 8,214 76,298 570 2,131 – (87,623) (410) Comprehensive income Loss for the year – – – – – (1,483) (1,483) Other comprehensive income Total comprehensive income – – – – – (1,483) (1,483) Transactions with owners Issue of ordinary shares 281 1,619 – – – – 1,900 Costs related to share issues – (28) – – – – (28) Share-based payments – charge – – – 102 – – 102 Share-based payments – expired – – – (1,660) – 1,660 – Total transactions with owners 281 1,591 – (1,557) – 1,660 1,974 Balance at 31 December 2023 8,495 77,889 570 573 – (87,446) 81 Balance at 1 January 2024 8,495 77,889 570 573 – (87,446) 81 Comprehensive income Loss for the year – – – – – (1,933) (1,933) Total comprehensive income – – – – – (1,933) (1,933) Transactions with owners Issue of ordinary shares 494 1,856 – – – – 2,350 Costs related to share issues – (42) – – – – (42) Equity component of convertible loan note – – – – 124 – 124 Share-based payments – charge – – – 83 – – 83 Share-based payments – prior year correction – – – – – 23 23 Share-based payments – expired – – – (5) – 5 – Total transactions with owners 494 1,814 – 78 124 28 2,538 Balance at 31 December 2024 8,989 79,703 570 651 124 (89,351) 686 The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. Details of each reserve can be found on page 66. Company Statement of Changes in Equity For the year ended 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 54 Notes Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Cash flows from operations Loss after tax for the year (2,726) (851) Depreciation 10 2 1 Fair value loss on financial assets 9 194 – Fair value gain on derivative liability 15 (43) – Finance income 9 (71) – Finance costs 5 204 39 Decrease/ (Increase) in receivables 12 319 (274) Increase /(Decrease) in payables 16 31 (419) Increase in provisions 14 328 27 Shares issued in exchange for services 81 – Share-based payment charge 21 181 106 Exchange differences 57 18 Net cash used in operating activities (1,443) (1,353) Cash flows from investing activities Loans issued 9 (797) – Payments for fixed assets 10 – (1) Net cash used in investing activities (797) (1) Cash flows from financing activities Loans repaid 15 (92) (368) Loans received less transaction fees 15 709 – Proceeds from issue of shares 18 1,259 1,900 Share issue costs 18 – (28) Net cash generated from financing activities 1,876 1,504 Net (decrease) /increase in cash and cash equivalents for the year (364) 150 Cash and cash equivalents at beginning of the year 475 325 Cash and cash equivalents at end of the year 111 475 Non-cash financing and investing activities The Company’s acquisition of a 49% interest in American Helium LLC’s leases was paid partly in cash and partly in shares. The total consideration was £1,580,000 of which £1,382,500 was settled in shares and the remaining £197,500 was paid in cash post year end (see note 10). 3,421,609 ordinary shares of were issued in exchange for services as follows: • On 13 May 2024, 678,261 new ordinary shares were issued to James Parsons at an issue price of 2.3 pence shares as part of his remuneration. • On 13 May 2024, 1,743,348 new ordinary shares of 0.5p each were issued as deal fees to an arranger of the GNG investment transaction. • On 20 December 2024, a further 1,000,000 new ordinary shares were issued to James Parsons at an issue price of 5 pence per share in lieu of cash for services rendered between June and November of this year. The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. Consolidated Cash Flow Statement For the year ended 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 55 Notes Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Cash flows from operations Loss after tax for the year (1,933) (1,483) Depreciation 10 2 1 Finance costs 5 204 39 Finance income 9 (71) – Fair value loss on financial assets 9 194 – Fair Value gain on derivative liability 15 (43) – Decrease/(increase) in receivables 4 81 (330) Increase in payables 17 8 68 (Increase)/decease in intercompany receivables 13 (61) 208 Increase in intercompany payables 17 11 – Foreign exchange 38 – Shares issued in exchange for services 81 – Share-based payment charge 21 106 102 Net cash used in operating activities (1,383) (1,395) Cash flows from investing activities Loans issued 9 (797) – Payments for fixed assets 10 – (1) Net cash used in investing activities (797) (1) Cash flows from financing activities Loans repaid 15 (92) (368) Loans received less transaction fees 15 709 – Proceeds from issue of shares 18 1,259 1,900 Share issue costs 18 – (28) Net cash generated from financing activities 1,876 1,504 Net increase in cash and cash equivalents for the year (304) 108 Cash and cash equivalents at beginning of the year 410 302 Cash and cash equivalents at end of the year 106 410 Non-cash financing and investing activities The Company’s acquisition of a 49% interest in American Helium LLC’s leases was paid partly in cash and partly in shares. The total consideration was £1,580,000 of which £1,382,500 was settled in shares and the remaining £197,500 was paid in cash post year end (see note 10.). 3,421,609 ordinary shares of were issued in exchange for services as follows: • On 13 May 2024, 678,261 new ordinary shares were issued to James Parsons at an issue price of 2.3 pence shares as part of his remuneration. • On 13 May 2024, 1,743,348 new ordinary shares of 0.5p each were issued as deal fees to an arranger of the GNG investment transaction. • On 20 December 2024, a further 1,000,000 new ordinary shares were issued to James Parsons at an issue price of 5 pence per share in lieu of cash for services rendered between June and November of this year. The Notes on pages 56 to 92 are an integral part of these consolidated financial statements. Company Cash Flow Statement For the year ended 31 December 2024 Ascent Resources plc Annual Report and Financial Statements 2024 | 56 Notes to the Accounts 1. Accounting policies Reporting entity Ascent Resources plc (Company no: 05239285) (‘the Company’ or ‘Ascent’) is a company domiciled and incorporated in England. The address of the Company’s registered office is 5 New Street Square, London, EC4A 3TW. The consolidated financial statements of the Company for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the ‘Group’). The Parent Company financial statements present information about the Company as a separate entity and not about its Group. The Company is admitted to AIM, a market of the London Stock Exchange. Statement of compliance The financial statements of the Group and Company have been prepared in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006. The Group’s and Company’s financial statements for the year ended 31 December 2024 were approved and authorised for issue by the Board of Directors on 30 May 2025 and the Statements of Financial Position were signed on behalf of the Board by Andrew Dennan. Both the Parent Company financial statements and the Group financial statements give a true and fair view and have been prepared and approved by the Directors in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006. Basis of preparation In publishing the Parent Company financial statements here together with the Group financial statements, the Company is taking advantage of the exemption in Section 408 of the Companies Act 2006 not to present its individual income statement and related notes that form a part of these approved financial statements. The Company loss for the year was £1,933,000 (2023: loss of £1,483,000). The presentational currency of the Group is British Pounds Sterling (“GBP”) and the functional currency of the Group’s subsidiaries domiciled outside of the UK in Malta, Slovenia and Netherlands are in Euros (“EUR”). The functional currency of Ascent Resources PLC, the parent company, is Sterling (“GBP”). Measurement Convention The financial statements have been prepared under the historical cost convention. The financial statements are presented in sterling and have been rounded to the nearest thousand (£’000s) except where otherwise indicated. The principal accounting policies set out below have been consistently applied to all periods presented. Going Concern The Group and Company financial statements have been prepared under the going concern assumption, which presumes that the Group and Company will be able to meet its obligations as they fall due for the foreseeable future. During 2024, in support of the Company’s new strategy to enter US onshore natural gas and helium markets, in April the Company successfully raised £0.55 million through the issuance of new equity at the spot price (2.3 pence per new share) at the time with warrants attached, plus $1 million (£0.81 million) through a senior secured convertible loan note (with warrants attached) which has a coupon of 15% and a conversion feature Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 57 in to new equity at a 40% premium to the placing price, being 3.22 pence per new share. Later in the year, in September the Company raised US$1 million (£0.76 million) in new equity at 2.3 pence per new share being a significant premium to the spot price at the time. Ahead of the year end, in December, alongside the acquisition of interests in proven and prospective oil and gas leases operated by American Helium LLC the Company raised a further $0.475 million (£0.378 million) at a significant premium to the prevailing share price with warrants attached. The Company has accessed the capital markets to raise the incremental proceeds it needs to ensure it had the resources to execute its plans. Post period in review, as set out in great detail in the Future Developments section of the Directors Report (above), the Company successfully raised £1.35 million (US$1.8 million) by way of new equity issue with warrants attached with proceeds used to fund its investment into the installation of artificial lift technologies on certain existing wells in the ARB Energy acreage, general working capital and to fund the partial redemption and re-profiling of the Company’s senior secured debt. The senior secured debt has now been re-profiled with its maturity date extended by 2 years to 22 April 2027 with a fixed conversion price of 1p per new conversion share. Additionally, the C-suite and Board have agreed to reduce the cash component of their remuneration by 30% for 6 months as of May 2025 to help sustain near term liquidity in the Company which is also implementing other cost savings initiatives to reduce its annual G&A further. Under the Group’s forecasts, the funds raised together with existing bank balances may not provide sufficient funding for twelve months as at the date of this report. Subject to operational performance and US natural gas prices as well as the quantum and timing of receipt of a potential payment from the ongoing Slovenian JV partner insolvency process, the Company may need to raise additional funding in the second half of 2025, the forecasts are sensitive to the timing and cash flows associated with the continuing situation in Slovenia, and discretionary spend incurred with executing the strategy to grow in onshore oil and natural gas production. As such, the Company may need to raise new capital within the forecast period to fund such discretionary spend. Negotiations with potential new investors is ongoing and based on historical and recent support from new and existing investors the Board believes that such funding, if and when required, could be obtained through new debt or equity issuances. However, the ability to raise these funds is not guaranteed at the date of signing these financial statements. As a consequence, there is a material uncertainty to the going concern of the Group. New and amended Standards effective for 31 December 2024 year-end adopted by the Group: Standard Description Effective date IFRS 16 Leases Lease Liability in a Sale and Leaseback – Amendments 1 January 2024 IAS 1 Presentation of Financial Statements Classification of liabilities as Current or Non-Current and Non-current Liabilities with Covenants – Amendments 1 January 2024 IFRS 7 Financial Instruments Disclosures – Supplier Finance Arrangements 1 January 2024 The new standards effective from 1 January 2024, as listed above, did not have a material effect on the Group’s financial statements. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 58 Standards, amendments and interpretations, which are effective for reporting periods beginning after the date of these financial statements which have not been adopted early: Standard Description Effective date IAS 21 The Effects of Changes in Foreign Exchange Rates 1 January 2025 IFRS 9 Financial Instruments Classification and Measurement of Financial Instruments– Amendments 1 January 2026 IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information 1 January 2024* IFRS S2 Climate-related Disclosures 1 January 2024* IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027* Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: Classification and Measurement of Financial Instruments 1 January 2026* IFRS Accounting Standards Annual Improvements to IFRS standards 1 January 2026 IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity – Amendments 1 January 2026* * Not yet endorsed in the UK There are no IFRS’s or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company or Group. Estimates and judgements Reserves – Reserves are proven, and probable oil and gas reserves calculated on an entitlement basis and are integral to the assessment of the carrying value of the exploration, evaluation and production assets. Estimates of commercial reserves include estimates of the amount of oil and gas in place, assumptions about reservoir performance over the life of the field and assumptions about commercial factors which, in turn, will be affected by the future oil and gas price. Carrying value of property, plant and equipment (developed oil and gas assets) (Note 10) – In April 2022, the Republic of Slovenia approved amendments to its Mining Law which include a total ban on hydraulic stimulation. Consequently, the operational and development review conducted by the Company determined that further field development was not economically viable and that the current producing wells had a remaining production life of 5.5 years. The result of the impairment review resulted in the developed oil and gas assets fully impaired by £21,193,000 to a carrying value of nil in the year ended 31 December 2023. A 49% direct interest in oil and gas leases, previously 100% held by American Helium LLC, was obtained on 31 December 2024. The total consideration was £1,580,000 of which £197,500 was paid in cash post year end, and the remaining £1,382,500 was settled in shares issued. The share price at the time of the transaction was lower than the consideration price and therefore the value has been adjusted by £870,000 to reflect this, leaving a value of £709,000 (note 10). The interest in these leases were assessed in accordance with the requirements of IAS 16 and IFRS 6, and, based on the fact that technical and commercial feasibility has been demonstrated through proven reserves which will be revenue generating, it was determined that the leases should be accounted for as property, plant and equipment under IAS 16 as they are no longer in the exploration and evaluation phase and therefore IFRS 6 is not deemed appropriate. The oil and gas leases will be depreciated on a unit of production basis. This depreciable asset base will be charged to the income statement based on production in the period over their expected lifetime. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 59 Judgement Applied in Classification of Derivative as Equity or Liability (Note 15) – The Group issued a convertible loan (CLN) with embedded derivative features, which necessitates significant judgement in determining the classification of the derivative as either equity or a financial liability. This judgement considers the contractual terms of the conversion option, assessing whether the derivative meets the criteria for classification as equity in accordance with the requirements of IAS 32. The CLN was classified as a derivative financial liability (DFL) and is held at fair value through profit or loss (FVTPL). Judgement Applied in Selection of Valuation Method – For CLNs where the embedded derivative is classified as a financial liability, an option-pricing model is applied to determine fair value, considering the complex terms and variability of the conversion feature. Estimation Applied in Valuation of Derivative Financial Liability – For CLNs classified as containing a DFL held at FVTPL, the Group used an appropriate valuation model to estimate the fair value of the DFL on initial recognition, at each reporting date, and upon conversion events. This approach is deemed appropriate due to the simulation’s ability to model a range of possible outcomes, capturing the inherent variability in conversion terms and share price volatility. Key inputs in the Monte Carlo model include the Company’s share price, share price volatility, the risk- free interest rate, and assumptions regarding the timing and probability of conversion. Changes in any of these assumptions may significantly impact the fair value of the derivative liability, potentially resulting in profit or loss variations. Management regularly reassesses these inputs, utilising historical data and market-based assumptions to ensure that the fair value estimation reflects the economic substance of the convertible instrument. Depreciation of property, plant and equipment (Note 10) – Upon commencing commercial production we began to depreciate the assets associated with current production. The depreciation on a unit of production basis requires judgment and estimation in terms of the applicable reserves over which the assets are depreciated and the extent to which future capital expenditure is included in the depreciable cost when such expenditure is required to extract the reserve base. The calculations have been based on actual production, estimates of P50 reserves and best estimates of the future workover costs on the producing wells to extract this reserve. The depreciation charge for the year was £2,000 for the remaining office equipment assets, (2023: £1,000). Valuation of convertible loan note receivable (Note 9) – The Group entered into a convertible loan note receivable from GNG Partners LLC (“GNG”) in the year ended 31 December 2024 which had a carrying value of £677,000 at the year end. The instrument is recorded at amortised cost. The loan is interest fee and therefore management estimated the fair value on initial recognition to be £676,942 using the present value formula and a discount rate of 15% resulting in a fair value loss of £194,256. Finance income of £71,487 has been recognised and is being unwound evenly over the period of the loan. Valuation of Ascent Claim Entitlement SPV options (Note 21) – On 6 March 2024, the Company’s wholly owned subsidiary, Ascent Claim Entitlement SPV Ltd, issued 6,171,788 options to Directors and certain employees. The value of the options is accounted for using an approximation to the fair market value of the claim by assessing Ascent’s market capitalisation on AIM at the time of the distribution and deducting adjusted values of the other components of the Company’s business at that point in time, which as of February 2024 only included its recent claim against Geoenergo in the insolvency proceedings which had just been initiated. This is the same valuation basis on which Ascent established the SPV and entered into the relevant deed of assignment. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 60 Deferred tax (Note 7) – Judgment has been required in assessing the extent to which a deferred tax asset is recorded, or not recorded, in respect of the Slovenian operations. Noting the history of taxable losses and the initial phases of production, together with assessment of budgets and forecasts of tax in 2023 the Board has concluded that no deferred tax asset is yet applicable. This is included at Note 7. Decommissioning costs (Note 14) – Where a material obligation for the removal of wells and production facilities and site restoration at the end of the field life exists, a provision for decommissioning is recognised. The amount recognised is the one-off amount to the Company’s JV partner as per the Revised Joint Venture Agreement. A change in the key assumptions used to calculate rehabilitation provisions could have a material impact on the carrying value of the provisions. The carrying value of these provisions in the financial statements represents an estimate of the future costs expected to be incurred to rehabilitate each well, which is reviewed at least annually. Future costs are estimated by internal experts, with external specialists engaged periodically to assist management. These estimates are based on current price observations, taking into account developments in technology and changes to legal and contractual requirements. Expectations regarding cost inflation are also incorporated. The carrying value of these provisions have not been discounted to provide a present value of these future costs due to the near- term uncertainty of when these costs may materialise. Intercompany receivables – Company only (Note 13b) – In line with the requirements of IFRS 9 the Board has carried out an assessment of the potential future credit loss on intercompany receivables under a number of scenarios. Arriving at the expected credit loss allowance involved considering different scenarios for the recovery of the intercompany loan receivables, the possible credit losses that could arise and the probabilities for these scenarios. In April 2022, the Republic of Slovenia approved amendments to its Mining Law which include a total ban on hydraulic stimulation. Consequently, the operational and development review conducted by the Company determined that further field development was not economically viable and that the current producing wells had a remaining production life of 5.5 years. Recognising the loss in economic value, management took the decision fully impair the receivable in the Company accounts by £130k in the year ended 31 December 2023. Investments – Company only (Note 11) – Judgement has been made in respect of the carrying value of the Company’s carrying value of its investments in the subsidiaries. The process for this is the same as the consideration given in respect of both Intangible Assets and Property, Plant and Equipment (see above). At the year ended 31 December 2024 and 2023, the investment is fully impaired. Accounting policies Basis of consolidation (Note 11) – Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control. The consolidated financial statements present the results of the Company and its subsidiaries as if they formed a single entity. Inter-company transactions and balances between Group companies are therefore eliminated in full. The results of undertakings acquired or disposed of are consolidated from or to the date when control passes to or from the Group. The results of subsidiaries acquired or disposed of during the period are included in the Consolidated Income Statement from the date that control commences until the date that control ceases. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 61 Where necessary, adjustments are made to the results of subsidiaries to bring the accounting policies they use into line with those used by the Group. Joint arrangements – The Group is party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries. The Group classifies its interests in joint arrangements as either joint ventures, where the Group has rights to only the net assets of the joint arrangement, or joint operations where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement. All of the Group’s joint arrangements are classified as joint operations. The Group accounts for its interests in joint operations by recognising its assets, liabilities, revenues and expenses in accordance with its contractually conferred rights and obligations. The Group has one joint arrangement, the Petišovci joint venture in Slovenia in which Ascent Slovenia Limited (a 100% subsidiary of Ascent Resources plc) has a 75% working interest, however whilst in a cost recovery position the Company is entitled to 90% of hydrocarbon revenues produced. Depreciation of property plant and equipment – The cost of production wells and the American Helium leases are depreciated on a unit of production basis. The depreciation charge is calculated based on total costs incurred to date plus anticipated future workover expenditure required to extract the associated gas reserves. This depreciable asset base is charged to the income statement based on production in the period over their expected lifetime P50 production extractable from the wells per the field plan. The infrastructure associated with export production is depreciated on a straight-line basis over a two-year period as this is the anticipated period over which this infrastructure will be used. Foreign currency The Group’s strategy is focussed on developing oil and gas projects and ESG metals funded by shareholder equity and other financial assets which are principally denominated in sterling. The functional currency of the Company is sterling. Transactions in foreign currency are translated to the respective functional currency of the Group entity at the rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated to the functional currency at the rates prevailing on the reporting date. Exchange gains and losses on short-term foreign currency borrowings and deposits are included with net interest payable. The assets and liabilities of foreign operations are translated to sterling at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated to sterling at the average rate ruling during the period. Foreign exchange differences arising on retranslation are recognised directly in a separate component of equity. Foreign exchange differences arising on inter-company loans considered to be permanent as equity are recorded in equity. The exchange rate from euro to sterling at 31 December 2024 was £1: €1.2069 (2023: £1: €1.1537). On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated income statement as part of the profit or loss on disposal. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 62 Exchange differences on all other transactions, except inter-company foreign currency loans, are taken to operating loss. Cash and cash equivalents In the consolidated statement of cash flows, cash and cash equivalents include, deposits held at call with banks with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at fair value through profit or loss (FVTPL). Taxation The tax expense represents the sum of the tax currently payable and any deferred tax. The tax currently payable is based on the estimated taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using the expected tax rate applicable to annual earnings. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding tax bases used in the computation of taxable profit. It is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Equity-settled share-based payments The cost of providing share-based payments to employees is charged to the income statement over the vesting period of the related share options or share allocations. The cost is based on the fair values of the options and shares allocated determined using the binomial method. The value of the charge is adjusted to reflect expected and actual levels of vesting. Charges are not adjusted for market related conditions which are not achieved. Where equity instruments are granted to persons other than directors or employees the Consolidated Income Statement is charged with the fair value of any goods or services received. Grants of options in relation to acquiring exploration assets in licence areas are treated as additions to Slovenian exploration costs at Group level and increases in investments at Company level. Provisions A provision is recognised in the Statement of Financial Position when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by estimating the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Convertible loan notes Upon issue of a new convertible loan, where the convertible option is at a fixed rate, the net proceeds received from the issue of CLNs are split between a liability element and an equity component at the date of issue. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 63 The fair value of the liability component is estimated using the prevailing market interest rate for similar non- convertible debt. The difference between the proceeds of issue of the CLNs and the fair value assigned to the liability component, representing the embedded option to convert the liability into equity of the Group, is included in equity and is not remeasured. Where the convertible loan note includes a conversion feature, it is bifurcated from the host debt liability and recognised initially at fair value and remeasured to fair value at the year end reporting date with the movements in fair value recognised in the profit and loss account. Transaction costs are allocated proportionately between the host debt liability, the conversion feature and the equity portion, with the portion relating to the conversion feature expensed immediately in profit and loss account. The equity portion is deducted from the equity reserve, and the amount allocated to the host debt is deducted from the liability on recognition. Subsequent to the initial recognition the liability component is measured at amortised cost using the effective interest method. When there are amendments to the contractual loan note terms these terms are assessed to determine whether the amendment represents an inducement to the loan note holders to convert. If this is considered to be the case the estimate of fair value adjusted as appropriate and any loss arising is recorded in the income statement. Where there are amendments to the contractual loan note terms that are considered to represent a modification to the loan note, without representing an inducement to convert, the Group treats the transaction as an extinguishment of the existing convertible loan note and replaces the instrument with a new convertible loan note. The fair value of the liability component is estimated using the prevailing market interest rate for similar nonconvertible debt. The fair value of the conversion right is recorded as an increase in equity. The previous equity reserve is reclassified to retained loss. Any gain or loss arising on the extinguishment of the instrument is recorded in the income statement, unless the transaction is with a counterparty considered to be acting in their capacity as a shareholder whereby the gain or loss is recorded in equity. Where the loan note is converted into ordinary shares by the loan note holder; the unaccreted portion of the loan notes is transferred from the equity reserve to the liability; the full liability is then converted into share capital and share premium based on the conversion price on the note. On issue of a convertible loan, the fair value of the liability component is determined by discounting the contractual future cash flows using a market rate for a non-convertible instrument with similar terms. This value is carried as a liability on the amortised cost basis unless is designated as a Fair Value Through Profit and Loss (“FVTPL”) at inception. Financial instruments designated as FVTPL are classified in this category irrevocably at inception and are derecognised when extinguished. They are initially measured at fair value and transaction costs directly attributable to their acquisition are recognised immediately in profit or loss. Subsequent changes in fair values are recognised in the income statement with profit or loss. Equity instruments are instruments that evidence a residual interest in the assets of an entity after deducting all of its liabilities. Therefore, when the initial carrying amount of a compound financial instrument is allocated to its equity and liability components, the equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. The value of any derivative features (such as a call option) embedded in the compound financial instrument other than the equity component (such as an equity conversion option) is included in the liability component. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 64 Non-derivative financial instruments Non-derivative financial instruments comprise of investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings and trade and other payables. Financial instruments Classes and categories Financial assets that meet the following conditions are measured subsequently at amortised cost using effective interest rate method: • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and, • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets for which the amount of future receipts are dependent upon the Company’s share price over the term of the instrument do not meet the criteria above and are recorded at fair value through profit and loss. Measurement Financial assets at amortised cost. A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment For trade receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available. The Group’s trade receivables are generally settled on a short time frame without material credit risk. The Group recognises a loss allowance for expected credit losses on financial assets which are measured at amortised cost. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a twelve- month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next twelve months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Lifetime expected credit losses (ECLs) for intercompany loan receivables are based on the assumptions that repayment of the loans are demanded at the reporting date due to the fact that the loan is contractually Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 65 repayable on demand. The subsidiaries do not have sufficient funds in order to repay the loan if demanded and therefore the expected manner of recovery to measure lifetime expected credit losses is considered. A range of different recovery strategies and credit loss scenarios are evaluated using reasonable and supportable external and internal information to assess the likelihood of recoverability of the balance under these scenarios. Financial liabilities Financial liabilities at amortised cost are initially recognised at fair value net of transaction costs incurred. Subsequent to initial measurement financial liabilities are recognised at amortised cost. The difference between initial carrying amount of the financial liabilities and their redemption value is recognised in the income statement over the contractual terms using the effective interest rate method. This category includes the following classes of the financial liabilities, trade and other payables, bonds and other financial liabilities. Financial liabilities at amortised costs are classified as current or non-current depending on whether these are due within 12 months after the balance sheet date or beyond. Financial liabilities are derecognised when either the Group is discharged from its obligation, they expire, are cancelled, or replaced by a new liability with substantially modified terms. Financial liabilities are designated as either: (i) FVTPL; or (ii) other financial liabilities. All financial liabilities are classified and subsequently measured at amortised cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Accounts payable and accrued liabilities is classified as other financial liabilities and carried on the statement of financial position at amortised cost. Derivatives which are financial liabilities are initially recognised at fair value and are subsequently remeasured at fair value at each year-end prior to settlement. The movements in fair value in each period is recognised within other net gains/(losses) in the Consolidated Statement of Comprehensive Income. Share-based payments Share-based payments relate to transactions where the Group receives services from employees or service providers and the terms of the arrangements include payment of a part or whole of consideration by issuing equity instruments to the counterparty. The Group measures the services received from non-employees, and the corresponding increase in equity, at the fair value of the goods or services received. When the transactions are with employees, the fair value is measured by reference to the fair value of the share-based payments. The expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Warrants Warrants granted as part of a financing arrangement which fail the fixed-for-fixed criteria as a result of either the consideration to be received or the number of warrants to be issued is variable, are initially recorded at fair value as a financial liability and charged as transaction cost deducted against the loan and held subsequently at fair value. Subsequently the derivative liability is revalued at each reporting date with changes in the fair value recorded within finance income or costs. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 66 Equity Share capital is determined using the nominal value of shares that have been issued. The Share premium reserve relates to amounts subscribed for share capital in excess of nominal value less costs of shares associated with share issues. Share based payments relate to transactions where the Group receives services from employees or service providers and the terms of the arrangements include payment of a part or whole of consideration by issuing equity instruments to the counterparty. The Group measures the services received from non-employees, and the corresponding increase in equity, at the fair value of the goods or services received. When the transactions are with employees, the fair value is measured by reference to the fair value of the shares issued. The expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Equity-settled share-based payments are credited to a share-based payment reserve as a component of equity until related options or warrants are exercised or lapse. The Merger reserve relates to the value of shares, in excess of nominal value, issued with respect of the Trameta acquisition in 2016. The other equity reserve relates to the equity portion of the convertible loan note. See note 19 for further details. The Translation reserve comprises the exchange differences from translating the net investment in foreign entities and of monetary items receivable from subsidiaries for which settlement is neither planned nor likely in the foreseeable future. Retained losses includes all current and prior period results as disclosed in the income statement. Investments and loans Shares and loans in subsidiary undertakings are shown at cost. Provisions are made for any impairment when the fair value of the assets is assessed as less than the carrying amount of the asset. Inter-company loans are repayable on demand but are included as non-current as the realisation is not expected in the short term and are treated as part of the net investment. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Chief Executive Officer (“CEO”). Revenue recognition Sales represent amounts received and receivable from third parties for goods and services rendered to the customers. Sales are recognised when control of the goods has transferred to the customer. Condensate, which is collected at a separating station and transported via trucks to a customer in Hungary is recorded on delivery according to the terms of the contract. At this point in time, the performance obligation is satisfied in full with title, risk, entitlement to payment and customer possession confirmed. Revenue is measured as the amount of consideration which the Group expects to receive, based on the market price for gas and condensate after deduction of costs agreed per the Restated Joint Operating Agreement (“RJOA”) and sales taxes. The Company follows the five step process set out in IFRS 15 for revenue recognition. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 67 Revenue is derived from the production of hydrocarbons under the Petišovci Concession, which Ascent Slovenia Limited holds a 75% working interest, however whilst in a cost recovery position the Company is entitled to 90% of hydrocarbon revenues produced. Under the terms of the RJOA, and in accordance with Slovenian law, the concession holder retains the rights to all hydrocarbons produced. The concession holder enters into sales agreements with customers and transfers the relevant portion of hydrocarbon sales to Ascent Slovenia Limited for the services it provides under the RJOA. During the year the revenue recognised was £nil (2023: £1,412,000). The on-going dispute with the JV partner was partially resolved in August 2022 resulting in the recognition of revenue, and receipt of funds, from the hydrocarbon production for the period April 2020 to December 2021, as a result revenue of £581,000 was recorded in the year to 31 December 2022. Hydrocarbon production for 2022 was subject to dispute and therefore was not recognised until 2023 following a tri-party mediation between ASL, Petrol Geo and Geoenergo. Sales from Jan, Feb, and May through to Sept 23 as well as partial payments for March and April were also recognised in 2023. The sales invoices were netted off against the costs due to Petrol GEO (JV Service provider). The claim was settled at €1.436million (£1,249million). The total sales for the period January 2022 through to September 2023 totalled €1.725million (£1.5million), and were netted off, resulting in a net cash payment of €288,689 (£251k) to ASL. Payments are typically received around 30 days from the end of the month during which delivery has occurred. There are no balances of accrued or deferred revenue at the balance sheet date. Under the RJOA, the Group is entitled to 90% of hydrocarbon revenues produced whilst in a cost recovery position in the Petišovci area and the Group records revenue on the entitlement basis accordingly. See strategic report for further information. Credit terms are agreed per RJOA contract and are short term, without any financing component. The Group has no sales returns or reclamations of services since it has only one costumer. Sales are disaggregated by geography. 2. Segmental Analysis The Group has three reportable segments,two operating segments and a head office segment, as described below. The operations and day to day running of the business are carried out on a local level and therefore managed separately. The operating segment reports to the UK head office which evaluates performance, decide how to allocate resources and make other operating decisions such as the purchase of material capital assets and services. Internal reports are generated and submitted to the Group’s CEO for review on a monthly basis. The operations of the Group as a whole are the exploration for, development and production of oil and gas reserves. The three geographic reporting segments are made up as follows: Slovenia exploration, development and production UK head office US American Helium Oil and gas leases Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 68 The costs of exploration and development works are carried out under shared licences with joint ventures and subsidiaries which are co-ordinated by the UK head office. Segment revenue, segment expense and segment results include transfers between segments. Those transfers are eliminated on consolidation. Information regarding the current and prior year’s results for each reportable segment is included below. 2024 UK £,000s Slovenia £’000s US £’000s Elims £’000s Total £’000s Total revenue – – – – – Cost of sales – (26) – – (26) Administrative expenses (1,650) (766) – – (2,416) Other income 3 – – – 3 Material non-cash items Depreciation (2) – – – (2) Fair value loss on financial assets (194) – – – (194) Fair value gain on derivative liability 43 – – – 43 Finance income 73 – – – 73 Finance costs (206) (1) – – (207) Reportable segment loss before tax (1,933) (793) – – (2,726) Taxation – – – – – Reportable segment loss after tax (1,933) (793) – – (2,726) Reportable segment assets Property, plant and equipment 1 – 709 – 710 Other debtors 677 – – – 677 Prepayments 216 – – – 216 Total non-current assets 894 – 709 – 1,603 Other assets 586 386 – (446) 526 Consolidated total assets 1,480 386 709 (446) 2,129 Reportable segment liabilities Trade payables (491) (294) – – (785) External loan balances (793) – – – (793) Inter-group borrowings (219) – – 219 – Other liabilities – (1,019) – – (1,019) Consolidated total liabilities (1,503) (1,313) – 219 (2,597) Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 69 2023 UK £,000s Slovenia £’000s Elims £’000s Total £’000s Hydrocarbon sales – 1,412 – 1,412 Intercompany sales 363 – – 363 Total revenue 363 1,412 – 1,775 Cost of sales – (626) – (626) Administrative expenses (1,681) (279) – (1,960) Material non-cash items Depreciation (1) – – (1) Impairment (130) – 130 – Goodwill impairment (38) (1) – (39) Reportable segment (loss)/profit before taxation (1,487) 506 130 (851) Taxation Reportable segment (loss)/profit after taxation (1,487) 506 130 (851) Reportable segment assets Property, plant and equipment 3 – – 3 Prepaid abandonment fund – 262 – 262 Investment in subsidiaries – – – – Intercompany receivables – – – – Total non-current assets 3 262 – 265 Other assets 765 33 – 798 Consolidated total assets 768 295 – 1,063 Reportable segment liabilities Trade payables (289) (273) – (562) External loan balances (189) – – (189) Inter-group borrowings (209) – 209 – Other liabilities – (690) – (690) Consolidated total liabilities (687) (963) 209 (1,441) 3. Operating loss is stated after charging: Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Employee costs 689 885 Impairment charge – 72 Shared based payment charge 85 105 Depreciation 2 1 Auditor’s remuneration: Audit fees 56 50 832 1,113 Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 70 4. Employees and directors a) Employees The average number of persons employed by the Group, including Executive Directors, was: Year ended 31 December 2024 Year ended 31 December 2023 Management and technical 6 7 b) Directors and employee’s remuneration Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Employees and directors Wages and salaries 659 768 Social security costs 64 101 Pension costs 12 3 Share based payments 181 105 Taxable benefits 14 13 930 990 c) Director’s remuneration Please see Remuneration report on pages 40-41. 5. Finance costs recognised in the year Finance costs Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Interest charge on loans (204) (37) Bank charges (3) (2) (207) (39) Please refer to Note 15 for a description of financing activity during the year. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 71 6. Income tax expense Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Current tax expense – – Deferred tax expense – – Total tax expense for the year – – The difference between the total tax expense shown above and the amount calculated by applying the standard rate of UK corporation tax (small profits rate) to the loss before tax is as follows: Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Loss for the year (2,726) (855) Less tax expense 16 (5) Income tax using the Company’s domestic tax rate at 19% (2023: 19%) (515) (162) Effects of: Effect of tax rates in foreign jurisdictions (106) 126 Other non-deductible expenses 691 196 Net increase in unrecognised losses c/f (70) (160) Total tax expense for the year – – The Group has cumulative tax losses of approximately £230,000 (2023: £160,000) available to carry forward against future taxable profits. 7. Deferred tax – Group and Company Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Group Total tax losses – UK and Slovenia (2,710) (850) Unrecorded deferred tax asset at 19% (2023: 19%) 515 162 Company Total losses (1,933) (1,544) Unrecorded deferred tax asset at 19% (2023: 19%) 367 293 No deferred tax asset has been recognised in respect of the tax losses carried forward, due to the uncertainty as to when profits will be generated. Refer to critical accounting estimates and judgments. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 72 8. Earnings per share Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Result for the year Total loss for the year attributable to equity shareholders (2,726) (851) Weighted average number of shares Number Number For basic earnings per share 238,103,836 171,105,556 Loss per share (pence) (114.49) (49.74) As the result for the year was a loss, the basic and diluted loss per share are the same. At 31 December 2024, potentially dilutive instruments in issue were 183,691,288 (2023: 78,745,880). Dilutive shares arise from share options and warrants issued by the Company. 9. Financial assets at amortised cost – Group and Company 31 December 2024 £’000s At 1 January 2024 – Convertible loan notes receivable 797 Adjustment to recognise at present value (194) Finance income 71 Foreign exchange adjustment 3 At 31 December 2024 677 On 24 April 2024 the group invested US$1 million (£797k), into GNG Partners LLC via an unsecured two-year convertible loan note. GNG Partners LLC used these funds to acquire the assets of Paradox Resources LLC. Other key terms of the convertible loan notes are as follows: • Date of maturity of April 2026; • The notes have a zero-coupon; and • Converts, at the election of the Company, into 1 million membership units of GNG. The convertible loan note is held at amortised cost. Management determined the present value to be £676,942 using the present value formula, resulting in a loss of £194,256. Interest income of £71,487 has been recognised and is being unwound evenly over the period of the loan. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 73 10. Property, plant and equipment Cost Computer Equipment £’000s Developed Oil & Gas Assets £’000s Total £’000s At 1 January 2023 12 24,166 24,178 Additions – – – At 31 December 2023 12 24,166 24,178 At 1 January 2024 12 24,166 24,178 Additions – 709 709 At 31 December 2024 12 24,875 24,887 Depreciation At 1 January 2023 (8) (24,166) (24,174) Charge for the year (1) – (1) At 31 December 2023 (9) (24,166) (24,175) At 1 January 2024 (9) (24,166) (24,175) Charge for the year (2) – (2) At 31 December 2024 (11) (24,166) (24,177) Carrying value At 31 December 2024 1 709 710 At 31 December 2023 3 – 3 In April 2022, the Republic of Slovenia approved amendments to its Mining Law which include a total ban on hydraulic stimulation. Consequently, the operational and development review conducted by the Company determined that further field development was not economically viable and that the current producing wells had a remaining production life of 5.5 years hence the full impairment of the asset in 2022. Details of the impairment judgments and estimates in the fair value less cost to develop assessment as set out in Note 1. A 49% direct interest in oil and gas leases, previously 100% held by American Helium LLC, was obtained on 31 December 2024. The total consideration was £1,580,000 of which £197,500 was paid in cash post year end, and the remaining £1,382,500 was settled in shares issued. The share price at the time of the transaction was lower than the consideration price and therefore the value has been adjusted by £870,000 to reflect this, leaving a value of £709,000. The interest in these leases were assessed in accordance with the requirements of IAS 16 and IFRS 6, and, based on the fact that technical and commercial feasibility has been demonstrated through proven reserves which will be revenue generating, it was determined that the leases should be accounted for as property, plant and equipment under IAS 16 as they are no longer in the exploration and evaluation phase and therefore IFRS 6 is not deemed appropriate. The oil and gas leases will be depreciated on a unit of production basis. This depreciable asset base will be charged to the income statement based on production in the period over their expected lifetime. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 74 11. Investments – Company Investments in subsidiaries 2024 £’000s 2023 £’000s Net book value At 31 December – – In April 2022, the Republic of Slovenia approved amendments to its Mining Law which include a total ban on hydraulic stimulation. Consequently, the operational and development review conducted by the Company determined that further field development was not economically viable and that the current producing wells had a remaining production life of 5.5 years and the investment in subsidiaries was impaired 100%. The Company’s subsidiary undertakings at the date of issue of these financial statements, which are all 100% owned, are set out below: Name of company & registered office address Principal activity Country of incorporation % of share capital held 2024 % of share capital held 2023 Ascent Slovenia Limited Tower Gate Place Tal-Qroqq Street Msida, Malta Oil and gas exploration Malta 100% 100% Ascent Resources doo Glavna ulica 7 9220 Lendava Slovenia Oil and gas exploration Slovenia 100% 100% Trameta doo Glavna ulica 7 9220 Lendava Slovenia Infrastructure owner Slovenia 100% 100% Ascent Hispanic Resources UK Limited 5 New Street Square London EC4A 3TW Oil and gas exploration England and Wales 100% 100% Ascent Hispanic Ventures, S.L. C Lluis Muntadas, 8 08035 Barcelona Oil and gas exploration Spain 100% 100% Ascent Claim Entitlement SPV Ltd Holding Company England and Wales 100% 100% All subsidiary companies are held directly by Ascent Resources plc. Consideration of the carrying value of investments is carried out alongside the assessments made in respect of the recoverability of carrying value of the group’s producing and intangibles assets. The judgements and estimates made therein are the same as for investments and as such no separate disclosure is made. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 75 Investments in associates Name of company & registered office address Principal activity Country of incorporation % of share capital held 2024 % of share capital held 2023 Ascent D1 Ltd 5 New Street Square London EC4A 3TW Holding Company England and Wales 49% – On 11 December 2024, the Company purchased 490 ordinary shares of £1 in Ascent D1 Ltd, making it a 49% owned associate. The remaining 51% is owned by Delta Energy Corp Sarl. Summary financial information of Ascent D1 Ltd has not been presented as it is not material to the financial statements and therefore there is no share of profit or loss recognised in the statement of comprehensive income. 12. Trade and other receivables – Group 2024 £’000s 2023 £’000s VAT recoverable – 9 Prepaid abandonment liability – 262 Prepayments & accrued income 274 314 Unpaid share capital 357 – 631 585 Less non-current portion (216) (262) Current portion 415 323 The prepaid abandonment liability represents funds the Group has deposited into a bank account to be made available for the purposes of decommissioning wells that are currently in production. During the period the prepaid abandonment fund of £262,000 (EUR 300,000) was impaired to nil as the RJOA was unilaterally terminated by the Geoenergo Administrator who has confirmed EUR 250,000 was paid to the state abandonment fund, specifically the Slovenia Eko fund. The remaining EUR 50k is on account with Geoenergo and forms part of the insolvency estate. Given these proceeds form part of a wider insolvency estate, there is currently no certainty about a full recovery of these monies and in accordance with IFRS reporting standards it has been decided to impair the remainder of the prepaid abandonment fund. Post year end, the claim for the repayment of the prepaid abandonment fund has been put forward in full, given that the wells have been transferred to Geoenergo. See note 23 for further details. Unpaid share capital relates to the shares issue on 20 December 2024, which the funds were received post year end, see note 18 for further details. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 76 13. Trade and other receivables – Company a) Trade Receivables 2024 £’000s 2023 £’000s VAT recoverable 4 10 Prepayments & accrued income 274 345 Unpaid share capital 357 – Intercompany receivables (note 13b) 61 – 696 355 Less non-current portion (216) – Current portion 480 355 b) Intercompany Receivables Cash £’000s 2024 Services £’000s Total £’000s Cash £’000s 2023 Services £’000s Total £’000s Ascent Slovenia Limited – – – – – – Ascent Resources doo – – – – – – Trameta doo – – – – – – Ascent Hispanic Ventures 61 – 61 – – – 61 – 61 – – – Cash refers to funds advanced by the Company to subsidiaries. Services relates to services provided by the Company to subsidiaries. The loans are repayable on demand but are classified as non-current reflecting the period of expected ultimate recovery. Management have carried out an assessment of the potential future credit loss the loans classified as ‘stage 3’ under IFRS 9 and assessed for lifetime expected credit loss given their on-demand nature under a number of scenarios. In April 2022, the Republic of Slovenia approved amendments to its Mining Law which include a total ban on hydraulic stimulation. Consequently, the operational and development review conducted by the Company determined that further field development was not economically viable and that the current producing wells had a remaining production life of 5.5 years. As at 31 December 2022 the net present value was significantly lower than the carrying value of the assets which indicated that an impairment of 100% of intercompany receivables at the Company level was warranted. Impairment for the year under review was £nil (2023: £130,000). The intercompany balance with Ascent Hispanic Ventures of £61,000, has also been assessed for impairment by management. As per the agreement, the total amount is still receivable, and it is treated as part of the net investment. No impairment required. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 77 14. Provisions – Group £000s At 1 January 2023 663 Foreign exchange movement 27 At 31 December 2023 690 At 1 January 2024 690 Foreign exchange movement (32) Addition 361 At 31 December 2024 1,019 The amount provided for decommissioning costs represents the Group’s share of site restoration costs for the Petišovci field in Slovenia. The Company had placed €300,000 (£262,000) on deposit as collateral against this liability, however this was impaired to nil, (see note 12). See below note for details on the additional provision recognised in the Group. Petrol Geo acted as a service provider to the Company and its Joint Venture partner Geoenergo. Petrol Geo is a connected party to Geoenergo by virtue of their common controlling shareholder Petrol d.o.o. Further to a tri-party agreement signed in March 2023, Petrol Geo agreed to reduced monthly fixed fees and to be paid directly by the Company on behalf of the Joint Venture within 5 business days of the Company receiving the relevant monthly hydrocarbon production revenues from Geoenergo. Geoenergo made payments up to March 2023 and then for a number of subsequent months no further payments were made through to the termination of the RJOA on 19 January 2024. Petrol Geo has therefore only received partial payment of its invoices (relating to those months where the Company has received some payment from Geoenergo for the hydrocarbon proceeds produced). More over, Petrol Geo has been in breach of conducting its services in accordance with the Manager’s (the Company) instructions. Despite numerous notices of breach and requests to rectify their deficiencies in following managers instructions the breaches have continued to remain outstanding since January 2022. In accordance with the terms of the Service Agreement the manager has the right to suspend making payments while breaches remain outstanding and ASL has notified Petrol Geo to this effect. Ascent’s lawyers, Senica, have concluded that since this claim is against the Joint Venture (and therefore the Company) that there may be a less than a 50% chance of success for the Company and therefore Ascent may be faced with a decision requiring the full claim amount to have to be paid along with interest and the costs of the procedure. A provision of £361,000 (EUR 435,000) has therefore been recognised. The Company however has not provided for receipt of payables claimed, owed and of which have been recognised in the approved list of tested claims relating to the continuing insolvency proceedings of Geoenergo d.o.o. (the Company’s Slovenian former JV partner) and the amounts claimed by the Company in its dispute with Petrol Geo under the Framework Build Operate and Transfer agreement. The Company only expects to recognise these proceeds if and as and when they have been paid and received. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 78 15. Borrowings – Group and Company Group 2024 £’000s 2023 £’000s Current Borrowings – 184 Convertible loan notes 780 5 Derivative liability – conversion feature 13 – Non-current Borrowing – – 793 189 Company Current Borrowings – 184 Convertible loan notes 780 5 Derivative liability – conversion feature 13 – Non-current Borrowing – – 793 189 Convertible loan notes In April 2024, the Company entered into a $2million secured fixed coupon loan facility with RiverFort Global Opportunities (“RiverFort”). Under the agreement the Company received a first advance of $1million less the historic debt netted against this of £93,383 leaving a cash receipt of $0.883million (£708,992) as the loan amount issued on 24 April 2024 (the “Initial Loan”). Further advances will take place subject to mutual agreement between the Company and RiverFort. The Initial Loan has a 12-month term, during which it is convertible at a fixed price of 3.22 pence, being a 40% fixed premium to the issue price. The loan contains a 7% drawdown fee plus transaction closing costs which were payable via the issue of 2,962,426 new ordinary shares of 0.5p each in the Company. The Initial Loan has a 15% fixed coupon attached to it, payable on redemption, and warrants equal to 33% of the Initial Loan amount exercisable at 140% of the Issue Price at any time during the next four years. The Loan is secured against a company debenture. The gross amount of the loan payable is $1million, this has been accounted for under amortised cost. An effective interest rate of 15% has been applied and this has been unwound over the term of the loan. Under IFRS, the conversion feature of the loan has been bifurcated from the host debt liability and recognised initially at fair value and remeasured to fair value at the year end reporting date with the movements in fair value recognised in the profit and loss account. Transaction costs have been allocated proportionately between the host debt liability and the conversion feature, with the portion relating to the conversion feature being expensed immediately in profit and loss account. The portion relating to the host debt liability has been deducted against the carrying value of the host debt liability, and the portion relating to warrants deducted against equity. The host debt liability is accounted for under amortised cost using the appropriate discount rate which is deemed to be 20%. The warrants are measured at the residual amount of the transaction price less the fair value of the conversion feature and the present value of the host debt liability. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 79 The Fair value of the conversion feature was established using an appropriate model which resulted in a value of £13,592 at the year end. The host debt liability is £774,545 and the equity component is £123,597. (There is a brought forward CLN balance of £5,000). The movement in the loans is analysed as follows: Cash/Non-cash movement Borrowings & CLN At 1 January 2024 189 Loan repayment Cash (91) Addition – Host debt liability Cash 709 Present value adjustment Non-cash (192) Interest charged on principle Non-cash 203 Transaction costs of the Convertible loan note Non-cash (53) Foreign exchange adjustment Non-cash 15 At 31 December 2024 780 31 December 2023 £’000s At 1 January 2023 520 Loan repayment (368) Interest charged on principle 37 At 31 December 2023 189 Derivative liability – conversion feature Derivative liability At 1 January 2024 – Addition – Derivative liability – conversion feature 56 Fair value adjustment (43) At 31 December 2024 13 16. Trade and other payables – Group 2024 £’000s 2023 £’000s Trade payables 446 489 Tax and social security payable 29 29 Accruals and deferred income 112 44 Consideration due for the 49% American Helium Investment 198 – 785 562 Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 80 17. Trade and other payables – Company 2024 £’000s 2023 £’000s Trade payables 157 210 Tax and social security payable 17 29 Accruals and deferred income 119 50 Consideration due for the 49% American Helium Investment 198 – Intercompany payable 219 209 710 498 18. Called up share capital 2024 £’000s 2023 £’000s Authorised 2,000,000,000 ordinary shares of 0.5p each 10,000 10,000 Allotted, called up and fully paid 3,019,648,452 deferred shares of 0.195p each 5,888 5,888 1,737,110,763 deferred shares of 0.09p each 1,563 1,563 165,567,280 ordinary shares of 0.5p each 1,044 1,044 98,894,774 ordinary shares of 0.5p each 494 – 8,989 8,495 Reconciliation of share capital movement 2024 number 2023 number At 1 January 208,608,491 152,418,015 Issue of shares during the year 98,894,774 56,190,476 At 31 December 307,503,265 208,608,491 The deferred shares have no voting rights and are not eligible for dividends. Shares issued during the year • On 13 May 2024, the Company raised total gross new equity proceeds of £555,000 from the issue of 24,130,435 new ordinary shares at a placing price of 2.3 pence per share. This included 2,173,913 shares issued to C4 Energy Limited, a company in which Andrew Dennan, James Parsons, and Marco Fumagalli, each have a 25% beneficial interest. • Also on 13 May 2024, 678,261 new ordinary shares were issued to James Parsons at an issue price of 2.3 pence per share, totalling £15,600. • As per the new loan agreement with RiverFort, 2,962,426 new ordinary shares of 0.5p were issued on 13 May 2024 in respect of a loan drawdown fee which was payable in shares, totalling £68,136. • The Company also issued 1,743,348 new ordinary shares of 0.5p each in the Company as deal fees to an arranger of the GNG investment transaction on 13 May 2024, totalling £40,097. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 81 • On 18 September 2024, the Company raised total gross new equity proceeds of £763,170 from the issue of 33,181,304 new ordinary shares to CB Energy VI,LLC. • On 20 December 2024, the Company issued 27,650,000 new ordinary shares for a total price of £1,382,500 as consideration to acquire direct interest in 49% of American Helium Utah LLC. The market value of the consideration shares has been accounted for resulting in the fair value of the shares recognised reduced to £511,525. The total consideration is £709,000 (see note 10). • On 20 December 2024, the Company also raised total gross new equity proceeds of £376,000 from the issue of 7,520,000 new ordinary shares at a price of 5 pence per share. • Also on 20 December 2024, 1,000,000 new ordinary shares for £50,000 were issued to a consultant at an issue price of 5 pence per share in lieu of cash for services rendered between June and November of this year. The market value of the consideration shares has been accounted for resulting in the total price recognised reduced to £18,500. Lastly, on the same date, broker option subscribers were issued 29,000 ordinary shares at a price 5 pence per share, totalling £1,450. Shares issued during the prior year • On 4 April 2023, the Company raised total gross new equity proceeds of £0.4 million from the issue of 13,333,333 new ordinary shares at a placing price of 3 pence per share. • On 17 October 2023, the Company issued 42,857,143 ordinary shares of 0.5p each at a subscription price of 3.5p per share to MBD Partners SA. Reconciliation of share capital and share premium: Reconciliation of share capital movement Share capital £’000s Share premium £’000s Total £’000s At 1 January 2024 8,495 77,889 86,384 24,130,435 ordinary shares of 0.5p each 121 434 555 678,261 ordinary shares of 0.5p each 3 12 15 2,962,426 ordinary shares of 0.5p each 15 53 68 1,743,348 ordinary shares of 0.5p each 8 31 39 33,181,304 ordinary shares of 0.5p each 166 598 764 27,650,000 ordinary shares of 0.5p each 138 374 512 7,520,000 ordinary shares of 0.5p each 38 339 377 1,029,000 ordinary shares of 0.5p each 5 15 20 Costs related to share issues (42) (42) At 31 December 2024 8,989 79,703 88,692 Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 82 Reconciliation of share capital movement Cash £’000s Non-cash £’000s Total £’000s At 1 January 2024 – – 86,384 24,130,435 ordinary shares of 0.5p each 495 60 555 678,261 ordinary shares of 0.5p each – 15 15 2,962,426 ordinary shares of 0.5p each – 68 68 1,743,348 ordinary shares of 0.5p each – 39 39 33,181,304 ordinary shares of 0.5p each 764 – 764 27,650,000 ordinary shares of 0.5p each – 512 512 7,520,000 ordinary shares of 0.5p each – 377 377 1,029,000 ordinary shares of 0.5p each – 20 20 Costs related to share issues – (42) (42) At 31 December 2024 1,259 1,049 88,692 19. Other Equity reserves Equity reserve At 1 January 2024 – Addition – Equity feature 124 At 31 December 2024 124 This is the equity component of the coupon loan facility with RiverFort Global Opportunities (see note 15). 20. Related party transactions There is no ultimate controlling party for the Company. Directors Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Group. In the opinion of the Board, the Group’s key management are the Directors of Ascent Resources plc. Information regarding their compensation is given in Note 4. 678,261 new ordinary shares were issued to James Parsons (note 18). 2,173,913 shares were issued to C4 Energy Limited, a company in which Andrew Dennan, James Parsons, and Marco Fumagalli, each have a 25% beneficial interest (note 18). Ascent Claim Entitlement SPV Ltd, issued 2,885,894 options to Andrew Dennan and the same amount to James Parsons’ too (note 21). There were no other transactions involving directors during the 2024 financial year, other than key management remuneration. Other transactions MBD Partners SA (a substantial shareholder of the Company) received $25,000 as a fee for introducing CB Energy VI, LLC to the Company. MBD Partners SA also participated in the Company’s fundraise by investing $250,000. On 30 January 2024, 45,000,000 investor warrants were issued to MBD Partners SA. There were no other related party transactions in 2024. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 83 21. Share based payments The Company has provided the Directors, certain employees and institutional investors with share options and warrants (“Options”). Options are exercisable at a price equal to the closing market price of the Company’s shares on the date of grant. The exercisable period varies and can be up to seven years once fully vested after which time the option lapses. Ascent Resources PLC Details of the Options outstanding during the year are as follows: Shares Weighted Average Price (pence) Outstanding at 1 January 2023 5,158,881 50.05 Granted during the year 2,398,456 – Expired during the year (544,444) – Outstanding at 31 December 2023 9,574,004 50.05 Exercisable at 31 December 2023 7,012,893 41.20 Outstanding at 1 January 2024 9,574,004 50.05 Granted during the year – – Outstanding at 31 December 2024 9,574,004 50.05 Exercisable at 31 December 2024 8,346,226 33.40 Options outstanding at 31 December 2024 have an exercise price of 5p (31 December 2023: 5p) and a weighted average remaining contractual life of 1.4 years (31 December 2023: 5 years). The amount recognised in the income statement for the year ended 31 December 2024 was £81,047 (2023: £105,069), which includes the options issued under Ascent Claim Entitlement SPV Ltd detailed below. The value of the options is measured by the use of a Black Scholes Model. The inputs into the Black Scholes Model made in 2022 were as follows: Share price at grant 4.55 Exercise price 5.00 Volatility 54.4% Expected life 5 years Risk free rate 3.23% Expected dividend yield 0% Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous 5 years. The expected life is the expiry period of the options from the date of issue. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 84 Details of the warrants issued in the year are as follows: Issued Exercisable from Expiry date Number outstanding Exercise price 30 January 2024 Anytime until 3 October 2028 45,000,000 5.00p 23 April 2024 Anytime until 23 April 2027 1,017,391 2.30p 23 April 2024 Anytime until 23 April 2028 8,043,478 3.22p 23 April 2024 Anytime until 23 April 2028 11,506,098 3.22p 20 December 2024 Anytime until 20 December 2027 22,000,000 5.00p 20 December 2024 Anytime until 20 December 2027 5,000,000 5.00p 20 December 2024 Anytime until 20 December 2027 11,280,000 2.30p 20 December 2024 Anytime until 20 December 2027 43,500 2.30p Warrants Weighted Average Price (pence) Outstanding at 1 January 2023 58,121,262 5.20 Granted during the year 13,333,333 5.00 Exercised during the year – – Expired during the year – – Outstanding at 31 December 2023 71,454,595 5.00 Exercisable at 31 December 2023 71,454,595 5.00 Outstanding at 1 January 2024 71,454,595 5.00 Granted during the year 103,890,467 3.50 Expired during the year – – Outstanding at 31 December 2024 175,345,062 4.80 Exercisable at 31 December 2024 175,354,062 4.80 The warrants outstanding at the period end have a weighted average remaining contractual life of 1.5 years. The exercise prices of the warrants are between 2.30 – 7.50p per share. Details of the warrants issued during the year ended 31 December 2023 are as follows: Issued Exercisable from Expiry date Number outstanding Exercise price 4 April 2023 Anytime until 3 April 2025 13,333,333 5.00p Ascent Claim Entitlement SPV On 6 March 2024, the Company’s wholly owned subsidiary, Ascent Claim Entitlement SPV Ltd, issued 6,171,788 options to Directors and certain employees. The options are exercisable at 0.005p for a period of 20 years after which time the option lapses. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 85 Details of the share options issued by Ascent Claim Entitlement SPV Ltd and outstanding during the year are as follows: Shares Weighted Average price (pence) Outstanding at 1 January 2024 – – Granted during the year 6,171,788 – Expired during the year – – Outstanding at 31 December 2024 6,171,788 0.005 Exercisable at 31 December 2024 6,171,788 0.005 The inputs into the Black Scholes Model made in 2024 for the options issued under Ascent Entitlement SPV Ltd were as follows: Share price at grant 1.32 Exercise price 0.005 Volatility 54.4% Expected life 20 years Risk free rate 3.92% Expected dividend yield 0% Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous 5 years. The expected life is the expiry period of the options from the date of issue. The value of the options is accounted for using an estimate value of the future claim outcome. 22. Financial risk management Group and Company The Group’s financial liabilities comprise CLNs, borrowings and trade payables. All liabilities are measured at amortised cost. These are detailed in Notes 15, 16 and 17. The Group has various financial assets, being trade receivables and cash, which arise directly from its operations. All are classified at amortised cost. These are detailed in Notes 12 and 13. The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk (including interest risk and currency risk). The risk management policies employed by the Group to manage these risks are discussed below: Credit risk Credit risk is the risk of an unexpected loss if a counter party to a financial instrument fails to meet its commercial obligations. The Group’s maximum credit risk exposure is limited to the carrying amount of cash of £111,000 (2023: £475,000) and trade and other receivables of £642,000 (2023: £394,000). Credit risk is managed on a Group basis. Funds are deposited with financial institutions with a credit rating equivalent to, or above, the main UK clearing banks. The Company’s liquid resources are invested having regard to the timing of payment to be made in the ordinary course of the Group’s activities. All financial liabilities are payable in the short term (between 0 to 3 months) and the Group maintains adequate bank balances to meet those liabilities. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 86 The Group makes allowances for impairment of receivables where there is an ECL identified. Refer to Note 13 for details of the intercompany loan ECL assessment. The credit risk on cash is considered to be limited because the counterparties are financial institutions with high and good credit ratings assigned by international credit rating agencies in the UK. The carrying amount of financial assets, trade receivables and cash held with financial institutions recorded in the financial statements represents the exposure to credit risk for the Group. At Company level, there is the risk of impairment of inter-company receivables if the full amount is not deemed as recoverable from the relevant subsidiary company. These amounts are written down when their deemed recoverable amount is deemed less than the current carrying value. An IFRS 9 assessment has been carried out as per Note 1. Market risk i) Currency risk Currency risk refers to the risk that fluctuations in foreign currencies cause losses to the Company. The Group’s operations are predominantly in Slovenia and going forward will be in the US. Foreign exchange risk arises from translating the euro earnings, assets and liabilities of the Ascent Resources doo and Ascent Slovenia Limited into sterling. The Group manages exposures that arise from receipt of monies in a non-functional currency by matching receipts and payments in the same currency. The Company often raises funds for future development through the issue of new shares in sterling. These funds are predominantly to pay for the Company’s exploration costs abroad in euros. As such any sterling balances held are at risk of currency fluctuations and may prove to be insufficient to meet the Company’s planned euro requirements if there is devaluation. The Group’s and Company’s exposure to foreign currency risk at the end of the reporting period is summarised below. All amounts are presented in GBP equivalent. Group Company 2024 £’000s 2023 £’000s 2024 £’000s 2023 £’000s Trade and other receivables – – – – Cash and cash equivalents 91 65 91 1 Trade and other payables (302) (220) – – Net exposure (211) (155) 91 1 Foreign currency sensitivity analysis The Group is mainly exposed to the currency of the European Union (the euro) and the currency of the United States (USD). The Group operates internationally and is exposed to currency risk on sales, purchases, borrowings and cash and cash equivalents that are denominated in a currency other than sterling. The currencies giving rise to this are the euro. Foreign exchange risk arises from transactions and recognised assets and liabilities. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 87 The Group does not use foreign exchange contracts to hedge its currency risk. Sensitivity analysis The following table details the Group’s sensitivity to a 10% increase and decrease in sterling against the stated currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents the management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis comprises cash and cash equivalents held at the balance sheet date. A positive number below indicates an increase in profit and other equity where sterling weakens 10% against the relevant currency. Euro currency change Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Group 10% strengthening of sterling 4 20 10% weakening of sterling 2 78 Company 10% strengthening of sterling 1 – 10% weakening of sterling 2 – USD currency change Year ended 31 December 2024 £’000s Year ended 31 December 2023 £’000s Group 10% strengthening of sterling 36 – 10% weakening of sterling 64 – Company 10% strengthening of sterling 36 – 10% weakening of sterling 64 – ii) Interest rate risk Interest rate risk refers to the risk that fluctuations in interest rates cause losses to the Company. The Group and Company have no exposure to interest rate risk except on cash and cash equivalent which carry variable interest rates. The Group carries low units of cash and cash equivalents and the Group and Companies monitor the variable interest risk accordingly. At 31 December 2024, the Group and Company has GBP loans valued at £780,000 (2023: £184,000) with an interest rate of 15% (2023: 8%) per annum. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 88 iii) Liquidity risk Liquidity risk refers to the risk that the Company has insufficient cash resources to meet working capital requirements. The Group and Company manages its liquidity requirements by using both short- and long-term cash flow projections and raises funds through debt or equity placings as required. Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group closely monitors and manages its liquidity risk. Cash forecasts are regularly produced, and sensitivities run for different scenarios (see Note 1). For further details on the Group’s liquidity position, please refer to the Going Concern paragraph in Note 1 of these accounts. Group Company Categorisation of Borrowings 2024 £’000s 2023 £’000s 2024 £’000s 2023 £’000s Less than six months – loans and borrowings – 184 – 184 Less than six months – trade and other payables – – – – Between six months and a year 785 – 785 – Over one year – – – – Capital management The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the balance between debt and equity. The Group reviews the capital structure on an on-going basis. As part of this review, the directors consider the cost of capital and the risks associated with each class of capital. The Group will balance its overall capital structure through new share issues and the issue of new debt or the repayment of existing debt. There are no externally imposed capital requirements. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 89 Fair value of financial instruments Set in the foregoing is a comparison of carrying amounts and fair values of the Group’s and the Company’s financial instruments: Categorisation of Financial Assets and Liabilities – Group Carrying amount Year ended 31 December 2024 Fair Value Year ended 31 December 2024 Carrying amount Year ended 31 December 2023 Fair Value Year ended 31 December 2023 Financial assets held at amortised cost Cash and equivalents – unrestricted 111 111 475 475 Loan receivable (note 9) (amortised cost) (non current) 677 677 – – Trade and other receivables (non current) 216 216 – – Trade and other receivables (current) 415 415 394 394 Financial liabilities (current) Trade and other payables held at amortised cost 785 785 562 562 Derivative liability (fair value through profit/loss) 13 13 – – Loans at fixed rate held at amortised cost 780 780 184 184 Capital management – Company Carrying amount Year ended 31 December 2024 Fair Value Year ended 31 December 2024 Carrying amount Year ended 31 December 2023 Fair Value Year ended 31 December 2023 Financial assets held at amortised cost Cash and equivalents – unrestricted 106 106 410 410 Loan receivable (note 9) (amortised cost) (non current) 677 677 – – Trade and other receivables (non current) 216 216 – – Trade and other receivables (current) 480 480 355 355 Financial liabilities (current) Trade and other payables held at amortised cost 491 491 289 289 Derivative liability (fair value through profit/loss) 56 13 – – Loans at fixed rate held at amortised cost 780 780 184 184 Convertible loan at fixed rate The convertible loan has been recorded at amortised cost. Trade and other receivables/payables and inter-company receivables All trade and other receivables and payables have a remaining life of less than one year. The ageing profile of the Group and Company receivable and payables are shown in Notes 12, 13, 14, 15, 16 and 17. Cash and cash equivalents Cash and cash equivalents are all readily available and therefore carrying value represents a close approximation to fair value. Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 90 23. Commitments and contingencies Decommissioning costs for the JV wells (Pg-10, Pg-11a and D-14) were agreed to be €345.2k between the JV partners and the relevant Slovenian ministry in 2013 when the RJOA was signed. Decommissioning costs become payable at the end of a wells operational life and a provision for decommissioning costs is made only when a well is put into production. With the change in the Slovenian mining law in April 2022 creating a ban on hydraulic stimulation, further development of the concession through hydraulic stimulation is now impossible. A provision of £690,000 (Note 14) has been made for the decommissioning of the PG10, PG11A and D-14 wells and represents the Company’s estimate of the Group’s share of the restoration costs for the JV wells (i.e. non-baseline wells) in the Petišovci field. During the year the Company’s Slovenian JV partner, who is also the concession holder, filed for self appointed insolvency and an administrator was appointed on 19 January 2024. The Administrator unilaterally terminated the RJOA which had provisions relating to the automatic handover of ASL’s interest in JV wells and infrastructure which existed prior to the signature of the RJOA in October 2013, which included the Pg-10 and Pg-11a wells which were subsequently transferred to Geoenergo on an “as-is” basis (i.e. as a producing well without any immediate abandonment obligations). Accordingly ASL is pursuing re-imbursement of the €300k pre-paid on account for the purpose of pre-funding abandonment liability. ASL has had c.€52k of this claim approved in the insolvency proceedings and post period in review ASL has resumed the suspended arbitration proceedings against Geoenergo to receive resolution on the disputed amounts of up to c.€248k. Upon completion of the insolvency proceedings Ascent expects to then consider to revise this contingent provision down to zero. Additionally, ASL is defending a claim on behalf of the JV brought by the service provider, Petrol Geo d.o.o. (a connected party to the JV partner, Geoenergo d.o.o. by virtue of their common controlling shareholder Petrol d.o.o.) relating to alleged non payment of invoices which were i) either due within 5 days of ASL’s receipt of payment from the relevant monthly hydrocarbon production proceeds (which ASL never received from Geoenergo); or ii) were issued for services alleged to be provided after the termination of the service agreement (which was automatic upon the termination of the RJOA). Accordingly the Company has provided for a contingency in the event the defence of this claim is unsuccessful. Finally the Company also has a number of potential claim receivables in the form of amounts claimed, owed and approved in the Geoenergo d.o.o. insolvency process and amounts claimed back from Petrol Geo. D.o.o. under the Framework Build Operate Transfer agreement. The Company is not providing for these potential receivables and will only recognise them if/as and when they are paid and received. 24. Events subsequent to the reporting period On 28 January 2025, 1,149,058 new ordinary shares of 0.5 pence each were issued at a price of 2.3pence. On 20 February 2025, a general meeting was held, and the resolution to authorise the redesignation of existing preference shares was passed, as well as the resolution to carry out a new bonus issue, pursuant to which every shareholder of the Company will receive one preference share issued fully paid up. The nominal value of the preference shares shall be paid up by the Company capitalising £15,375 standing to the credit of the Company’s share premium account. In May 2025, the Company continued to advance its strategic pivot towards the U.S. onshore oil & gas and helium sector with significant developments announced on 22 May 2025. The Company entered into conditional agreements, subject to shareholder approval for the issuance of new shares, to acquire a 49% direct non- Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 91 operated interest in a portfolio of producing and prospective oil and gas leases in west Colorado, operated by Locin Oil Corporation, spanning over 100,000 acres. This acquisition, for a consideration of US$2.5 million, was to be satisfied through the issuance of US$0.6 million in new shares at 0.5 pence per share and a US$1.9 million three-year convertible loan note with a conversion price of 1.0 pence per share and a 6.5% annual interest rate. The Colorado leases hold proved reserves (PDP and PDNP) of 8.06 Bcf of natural gas net to the joint operating agreement partners, with current production averaging 2 MMscfd in 2024 and potential for helium content up to 1.2%. Additionally, the Company conditionally acquired a 10% direct non-operated interest in a portfolio of approximately 80,000 acres of oil, gas, and helium-rich leases in northern Utah, operated by ARB Energy LLC, for US$750,000, satisfied by issuing 111,940,299 new shares at 0.5 pence per share. This Utah portfolio includes proved developed producing reserves of 8.7 Bcf of natural gas, with production averaging 2.3 MMscfd in 2024 and helium content up to 0.54%. Ascent also secured rights to earn a 50% economic interest in incremental production from existing wells through work programs and an option to acquire a further 23% interest in the Utah leases for US$1.5 million by 15 October 2025. In addition to Proven Reserves, the Arb Energy Utah leases have multiple potential upsides in up-dip and on-trend step out prospects which Arb Energy Utah estimated to have Proved Undeveloped Reserves of 44 Bcf, Probable Reserves of a further 23 Bcf and Prospective Resources of an additional 109 Bcf of natural gas with potentially 1.3 Bcf of Helium included as well. The JOA partners have also agreed to jointly evaluate the prospect inventory with a view to high-grading the opportunity set over the coming months. In these evaluations the partners expect to target the Entrada formation which has a high helium content association of up-to 1% contained within the produceable natural gas and condensate volumes. Ahead of then the Company and ARB expect to initiate a number of work operations on existing well bores to install artificial lift technologies designed to be low cost and low risk operations which can meaningfully enhance existing production. Locin Oil Corporation has also identified a number of material prospects into target structures which have previously tested or produced gas in the 1960’s and 70’s as well as on-trend step-out prospects estimated by Locin Oil Corporation to have gross Prospective Resources of an additional 663 Bcf of natural gas with potentially up to 5.3 Bcf of Helium included as well. Ascent and Locin have also agreed to jointly evaluate the prospect inventory with a view to high-grading the opportunity set over the coming months. In these evaluations the partners also expect to target the Entrada production formation which has a high helium content association contained within the produceable natural gas and condensate volumes. To support these acquisitions and ongoing operations, Ascent raised gross proceeds of £1.35 million (US$1.8 million) through the issuance of 270,000,000 new shares at 0.5 pence per share. The Company also partially redeemed US$300,000 of its senior secured loan with RiverFort Global Opportunities, also converting US$100,000 of the principal into 10,300,465 shares at 0.7245 pence per share, and reprofiled the remaining US$1,053,683 balance, extending the maturity to 22 April 2027 with a fixed conversion price of 1.0 pence per share. Additionally, 18,439,431 existing warrants to RiverFort were amended to an exercise price of 1.0 pence, and new warrants equivalent to 35% of the reprofiled debt were issued at the same price. Further to the Company’s transformation over the last twelve months, which include significant advancement of its Slovenian legacy claims and a successful repurposing of the Company to focus itself on growing onshore US oil and gas with helium assets, the Company proposes to appoint Mr David Patterson as Chief Executive Officer and Director of the Company. David is an experienced oil and gas explorer and geologist who has over 43 years of experience in the oil and gas industry experience onshore U.S. which includes a number of years of work in Utah and Colorado where most notably David was VP Geology for Rose Petroleum Plc (now Notes to the Accounts continued Ascent Resources plc Annual Report and Financial Statements 2024 | 92 called Zephyr Energy Plc) where he lead the evaluation of over 250,000 acres of leases in Utah. David has held previous roles which include VP and manager of Exploration, VP of Geology, Supervisor of Reserves and Senior Geological Engineer in prior roles through his career. David is currently VP of Exploitation at D3 Energy (where he will also continue his role) and will be retained by the Company for his services to Ascent with an annual salary of US$120,000 per annum, relating to which the Company has agreed with American Helium, Locin Oil and ARB Energy that Ascent can recharge the respective joint operations the full annual salary such that Ascent expects to pay $43,200 of this amount per annum, along with an options package whereby new options will be granted in the Company exercisable at a price of 1p per Option, which shall vest over 3 years and be exercisable over the following 2 years thereafter. David will be appointed to the Board and position of CEO following the Company’s next annual general meeting, subject to completion of customary director on-boarding checks. Post period under review, Mr Andrew Dennan has elected not to stand for re-election at the Company’s upcoming AGM and will retire as Director and Chief Executive Officer of the Company upon the convening of the AGM. Andrew has led Ascent for five years and feels this transformative moment is the right time to step aside as the business enters a new phase with a particular focus on the US. He will continue to support the Company during an extended handover period to the proposed new CEO and will in addition continue to support the Company in its pursuit of the Company’s highly valuable claims against the Republic of Slovenia under the Energy Charter Treaty, as well as in insolvency and associated proceedings against its Slovenian former JV partner and service provider. His detailed knowledge of these ongoing processes remains invaluable to Ascent. The Board are very thankful for the leadership and strategic input from Andrew over the last five years, where he has been instrumental in defending the Company’s interests in Slovenia and re-purposing the Company to execute its new US onshore growth strategy and wish him success in future pursuits. The Company also announces that as part of the refining of its board composition it no longer intends to immediately appoint a Chairman to the Board and accordingly the Company will now not be appointing Mr Gilles Thieffry to that position as previously announced on 9 December 2024. Mr Jean-Michel Doublet will assume the role of Interim Chairman. Additionally, as part of positioning the Company to grow via a production lead strategy onshore US, the Company is implementing certain cash preservation measures which include current C-suite and Board of Directors of the Company agreeing to reduce the cash component of their employment and/or service contracts by 30% over the next six months and their corresponding intention to settle these owed amounts, by subscribing for equity on the same terms as the placing (above), as soon as they are either out of a closed period or otherwise not in receipt of insider information and can cause a PMDR dealing. Furthermore the Company also expects to implement further cost saving measures, which in aggregate with the above changes are expected to reduce the general and administrative cash costs of the business by approximately 20% per annum, with such savings expected to be realised through 2H 2025 and beyond. Ascent Resources plc 5 New Street Square London EC4A 3TW ascentresources.co.uk Perivan.com 270952