TIDMRPT
RNS Number : 7210O
Enwell Energy PLC
12 October 2021
12 October 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 - Q3 2021
The average daily production of gas, condensate and LPG from the
MEX-GOL, SV and VAS fields for the period from 1 July 2021 to 30
September 2021 was as follows:-
Field Gas Condensate LPG Aggregate
(MMcf/d) (bbl/d) (bbl/d) boepd
Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020
-------- -------- -------- -------- -------- -------- -------- --------
MEX-GOL
& SV 21.0 18.2 749 641 278 287 4,645 4,049
-------- -------- -------- -------- -------- -------- -------- --------
VAS 2.5 3.0 24 31 - - 481 580
-------- -------- -------- -------- -------- -------- -------- --------
Total 23.5 21.2 773 672 278 287 5,126 4,629
-------- -------- -------- -------- -------- -------- -------- --------
Overall production volumes continued to be strong in Q3 2021,
showing an increase of approximately 11% compared with Q3 2020,
primarily as a result of new production volumes from the SV-25 well
in the SV field, which commenced production in February 2021 (see
announcement dated 25 February 2021), offset by natural field
decline.
The significant, and to date sustained, increase in European gas
prices in the period has fed through to Ukrainian gas prices, which
has benefited the sales prices being achieved by the Company.
Operations
At the MEX-GOL and SV fields, drilling of the SV-29 well was
completed at a final depth of 5,450 metres, and testing operations
are currently underway. 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.
The SV-31 well was spudded in September 2021 and has a target
depth of 5,250 metres. Drilling operations are scheduled to be
completed by the end of the first quarter of 2022, and, subject to
successful testing, production hook-up is scheduled during the
second quarter of 2022. The well is a development well, targeting
production from the V-21 and V-22 horizons in the Visean formation,
which have demonstrated good productivity in an existing nearby
well.
In addition, work has commenced on upgrades to the gas
processing plant at the MEX-GOL and SV fields, which 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 designed to improve overall
plant efficiencies, improve the quality of liquids produced and
boost recoveries of LPG, while reducing environmental emissions. In
total, the works are expected to take approximately three and a
half months to complete.
At the SC exploration licence, drilling of the SC-4 well
commenced in August 2021. This well, which has a target depth of
5,565 metres, is primarily an appraisal well, targeting production
from the V-22 horizon, as well as exploring the V-16 and V-21
horizons, in the Visean formation. Drilling operations are
scheduled to be completed in mid-2022. In addition, the acquisition
of 150 km(2) of 3D seismic at the licence is planned to commence
later in the year .
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 September 2021, the Company's cash resources were
approximately $62.7 million, comprised of $25.7 million equivalent
in Ukrainian Hryvnia and the balance of $37.0 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 very good operational quarter, with
strong production volumes and significantly higher gas prices in
Ukraine. We are looking forward to the test results of the SV-29
well, to continued good progress with the drilling of the SC-4 and
SV-31 wells, and to further progressing the Company's overall
development plans, enabled by the strong current gas revenues and
cash resources resulting from the recent surge in gas prices."
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 / Elliot Mustoe (Corporate
Finance)
Simon Johnson (Corporate Broking)
Citigate Dewe Rogerson Tel: 020 7638 9571
Ellen Wilton
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.
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
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
DRLFFDFWFEFSEIS
(END) Dow Jones Newswires
October 12, 2021 02:00 ET (06:00 GMT)
Enwell Energy (LSE:ENW)
Historical Stock Chart
From Feb 2024 to Mar 2024
Enwell Energy (LSE:ENW)
Historical Stock Chart
From Mar 2023 to Mar 2024