RNS Number : 2408E

Enwell Energy PLC

06 July 2021

6 July 2021

Enwell Energy plc

("Enwell" or the "Company")

Ukraine Update

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and production group, provides an update on its operational activities in Ukraine, where it operates the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV) and Vasyschevskoye (VAS) gas and condensate fields, as well as the Svystunivsko-Chervonolutskyi (SC) exploration licence .

Production - Q2 2021

The average daily production of gas, condensate and LPG from the MEX-GOL, SV and VAS fields for the period from 1 April 2021 to 30 June 2021 was as follows:-

   Field             Gas             Condensate              LPG              Aggregate 
                   (MMcf/d)            (bbl/d)             (bbl/d)              boepd 
              Q2 2021   Q2 2020   Q2 2021   Q2 2020   Q2 2021   Q2 2020   Q2 2021   Q2 2020 
             --------  --------  --------  --------  --------  --------  --------  -------- 
   & SV        21.2      17.6       752       649       326       304      4,723     3,978 
             --------  --------  --------  --------  --------  --------  --------  -------- 
   VAS          3.0       3.1       29        34         -         -        531       604 
             --------  --------  --------  --------  --------  --------  --------  -------- 
   Total       24.2      20.7       781       683       326       304      5,254     4,582 
             --------  --------  --------  --------  --------  --------  --------  -------- 

Overall production volumes reached record levels in Q2 2021, showing an increase of approximately 15% compared with Q2 2020 as a result of new production volumes from the SV-54 and SV-25 wells in the SV field, which commenced production in May 2020 and February 2021 respectively (see announcements dated 22 May 2020 and 25 February 2021), offset by natural field decline.


At the MEX-GOL and SV fields, drilling of the SV-29 well is continuing, with the well having reached a depth of approximately 5,250 metres. This well was spudded in February 2021, and has a target depth of 5,450 metres. Drilling operations are ahead of schedule, and are now expected to be completed in August 2021, and, subject to successful testing, production hook-up is now expected by the end of Q3 2021. The well is primarily a development well, targeting production from the V-22 horizon, as well as appraising the V-21 and V-23 horizons, in the Visean formation (such horizons formerly reported as "B" horizons).

In addition, preparations for upgrade works to the gas processing plant at the MEX-GOL and SV fields are continuing, with the design phase completed and procurement of long-lead items underway. These works involve an upgrade of the LPG extraction circuit, an increase to the flow capacity of the plant, and a significant increase to the liquids tank storage capacity. The works are scheduled to commence in Q4 2021, and are designed to improve overall plant efficiencies and boost recoveries of condensate and LPG.

At the SC exploration licence, development planning is well advanced, and includes the drilling of the SC-4 well, which is scheduled to commence later this month or early next month, and acquisition of 150 km(2) of 3D seismic, which is planned to commence in Q4 2021 .

At the VAS field, planning is continuing for a new well to explore the Vvdenska (VED) prospect within the VAS licence area.

VAS Licence Order for Suspension

The Company does not have any further information to report in relation to the Order for suspension relating to the production licence for the VAS field since the announcements made on 12 March 2019 and 19 March 2019 respectively, other than to report that the legal proceedings issued in the Ukrainian Courts to challenge the validity of the Order are ongoing, and the Com pany remains confident that it will ultimately be successful in such legal proceedings.

Cash Holdings

At 30 June 2021, the Company's cash resources were approximately $62.9 million, comprised of $26.5 million equivalent in Ukrainian Hryvnia and the balance of $36.4 million equivalent in a combination of US Dollars, Pounds Sterling and Euros.

COVID-19 Pandemic

The Group continues to monitor the situation relating to the COVID-19 pandemic, and to take any steps necessary to protect its staff and operations. However, as of the date hereof, there has been no operational disruption linked to the COVID-19 pandemic, and no material impact is currently envisaged on the Group's prospects. Nevertheless, the Group remains acutely aware of the risks, and is taking action to mitigate them where possible, with the safety of individuals and communities continuing to be the priority.

Sergii Glazunov, Chief Executive Officer, said : " We are pleased to report another strong operational quarter, with record production volumes, and excellent progress with the drilling of the SV-29 well. We are excited to soon be spudding SC-4, our first well on the SC exploration licence, which we are optimistic will be successful and pave the way for the future development of this licence."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (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 press release in his capacity as a qualified person, as required under the AIM Rules.

The Visean formations at the MEX-GOL and SV fields have previously been reported as the "B" sands or horizons due to their translation from the Cyrillic language, but the Company now intends to refer to such Visean formations as "V" sands or horizons.

 bbl/d    barrels per day 
 boepd    barrels of oil equivalent per day 
 cf       cubic feet measured at 20 degrees Celsius and 
           one atmosphere 
 km(2)    square kilometre 
 LPG      liquefied petroleum gas 
 MMcf/d   million cubic feet per day 
 %        per cent 
 $        US Dollars 

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

July 06, 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.