TIDMRPT
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
-------- -------- -------- -------- -------- -------- -------- --------
MEX-GOL
& 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.
Operations
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
Finance)
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.
Definitions
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
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END
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