RNS Number : 4973A

Enwell Energy PLC

02 June 2021

2 June 2021

Enwell Energy plc

("Enwell" or the "Company")

Reserves & Resources Update

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and production group, is pleased to announce an update on its hydrocarbon Reserves and Contingent Resources at its wholly owned and operated, via LLC Arkona Gas-Energy, Svystunivsko-Chervonolutskyi (SC) exploration licence in Ukraine .

Enwell engaged independent petroleum consultants, DeGolyer and MacNaughton, to prepare an assessment of the remaining Reserves and Contingent Resources attributable to the SC exploration licence as of 1 January 2021 (the "Report"). The Report is consistent with Enwell's current field development plans, and accords with the March 2007 (as revised in June 2018) SPE/WPC/AAPG/SPEE Petroleum Resources Management System standard for classification and reporting.

The Report estimates the remaining Reserves as of 1 January 2021 in the SC licence as follows:

                       Proved           Proved + Probable      Proved + Probable 
                        (1P)                   (2P)              + Possible (3P) 
                 17.20 Bscf / 0.49      65.16 Bscf / 1.85      85.03 Bscf / 2.41 
   Gas                  Bm(3)                  Bm(3)                  Bm(3) 
               ---------------------  ---------------------  --------------------- 
                145 Mbbl / 16 Mtonne   548 Mbbl / 61 Mtonne   716 Mbbl / 80 Mtonne 
               ---------------------  ---------------------  --------------------- 
                     3.2 MMboe              12.1 MMboe             15.7 MMboe 
               ---------------------  ---------------------  --------------------- 

The Report estimates the Contingent Resources as of 1 January 2021 in the SC licence as follows:

                Contingent Resources   Contingent Resources   Contingent Resources 
                        (1C)                   (2C)                   (3C) 
                  8.56 Bscf / 0.24      14.18 Bscf / 0.40      81.16 Bscf / 2.30 
   Gas                  Bm(3)                  Bm(3)                  Bm(3) 
               ---------------------  ---------------------  --------------------- 
                 72 Mbbl / 8 Mtonne    119 Mbbl / 13 Mtonne   682 Mbbl / 75 Mtonne 
               ---------------------  ---------------------  --------------------- 
                     1.6 MMboe              2.6 MMboe              15.0 MMboe 
               ---------------------  ---------------------  --------------------- 

The SC licence is located in the Poltava region in north-eastern Ukraine, approximately 15 km east of the Company's producing Svyrydivske ("SV") field, and has similar characteristics to the SV field. The licence was granted in May 2017, with a duration of 20 years, and extends over an area of 97 km(2) .

The licence is prospective for gas and condensate, and has been the subject of exploration since the 1980s, with five wells having been drilled on the licence since then, although none of these are currently on production. As with the productive reservoirs in the SV field, the prospective reservoirs in the licence comprise a series of gently dipping Carboniferous sandstones of Visean age inter-bedded with shales at depth between 4,600 and 6,000 metres. Geologically, the licence is located towards the middle of the Dnieper-Donets sedimentary basin which extends across the major part of north-eastern Ukraine. The vast majority of Ukrainian gas and condensate production comes from this basin.

The Report is consistent with the Company's proposed field development plan for the licence, which includes the acquisition of 150 km(2) of 3D seismic and the drilling of the SC-4 well, both activities scheduled to commence later this year, and the construction of a gas processing plant. Development will then continue with the drilling of a further six wells to recover the reserves and resources in the licence. Due to their targeted depths, the wells are each likely to take approximately 12 months to complete, and are intended to be drilled consecutively over the next eight years.

Sergii Glazunov, Enwell's Chief Executive Officer, said : " Based on this independent assessment, a material volume of Reserves and Contingent Resources has been estimated in our SC licence. With the confidence that this independent assessment provides, we have been progressing with our field development plan to recover the reserves and resources in the licence, and based on such work, we are optimistic about the future prospects for the development of the licence."

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.

For further information, please contact:

 Enwell Energy plc                           Tel: 020 3427 3550 
 Chris Hopkinson, Chairman 
 Sergii Glazunov, Chief Executive Officer 
 Bruce Burrows, Finance Director 
 Strand Hanson Limited                       Tel: 020 7409 3494 
 Rory Murphy / Matthew Chandler 
 Arden Partners plc                          Tel: 020 7614 5900 
 Ruari McGirr / Dan Gee-Summons (Corporate 
 Simon Johnson (Corporate Broking) 
 Citigate Dewe Rogerson                      Tel: 020 7638 9571 
 Elizabeth Kittle 

Dmitry Sazonenko, MSc Geology, MSc Petroleum Engineering, Member of AAPG, SPE and EAGE, Director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM Rules.

 AAPG          American Association of Petroleum Geologists 
 bbl           barrel 
 Bm(3)         thousands of millions of cubic metres 
 boe           one barrel of oil, plus (i) gas converted 
                to oil equivalent using a conversion rate 
                of 5,661 standard cubic feet of gas for 
                each barrel of oil equivalent; and (ii) 
                condensate converted to oil equivalent using 
                a conversion rate of one barrel of condensate 
                for each barrel of oil equivalent 
 Bscf          thousands of millions of standard cubic 
 gas           sales gas (meaning the total quantity of 
                gas to be produced from the reservoirs, 
                measured at the point of delivery, after 
                reduction for field separation, usage, and 
                other losses) 
 km(2)         square kilometre 
 km            kilometre 
 m(3)          cubic metre 
 Mbbl          thousand barrels 
 MMboe         million barrels of oil equivalent 
 Mtonnes       thousand tonnes 
 scf           standard cubic feet measured at 20 degrees 
                celsius and one atmosphere 
 SPE           Society of Petroleum Engineers 
 SPEE          Society of Petroleum Evaluation Engineers 
 WPC           World Petroleum Council 

The SPE/WPC/AAPG/SPEE Petroleum Resources Management System document, which includes definitions of Reserves and Contingent Resources categorisations, can be viewed at:


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.



(END) Dow Jones Newswires

June 02, 2021 02:00 ET (06:00 GMT)

Enwell Energy (LSE:ENW)
Historical Stock Chart
From Oct 2021 to Nov 2021 Click Here for more Enwell Energy Charts.
Enwell Energy (LSE:ENW)
Historical Stock Chart
From Nov 2020 to Nov 2021 Click Here for more Enwell Energy Charts.