Enwell Energy PLC Update on Arkona Acquisition - Legal Dispute (0475S)
July 03 2020 - 11:38AM
UK Regulatory
TIDMRPT
RNS Number : 0475S
Enwell Energy PLC
03 July 2020
3 July 2020
Enwell Energy plc
("Enwell" or the "Company")
Update on Arkona Acquisition - Legal Dispute
Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas
exploration and production group, provides an update on a Ukrainian
Court ruling relating to the Svystunivsko-Chervonolutskyi
exploration licence (the "Licence") in Ukraine, which is held by
LLC Arkona Gas-Energy ("Arkona"), which was acquired by Enwell in
March 2020 (see announcement dated 24 March 2020) .
The legal proceedings are between NJSC Ukranafta as claimant and
Arkona as defendant, and relate to claims made by NJSC Ukrnafta
about the procedure involved in the grant of the Licence to Arkona
in May 2017. NJSC Ukrnafta was the holder of a previous licence
over this area which expired prior to the grant of the Licence.
Arkona is defending the claims in such legal proceedings and
asserts that the claims are unwarranted and without merit.
A hearing of the legal proceedings has been held in the First
Instance Court in Ukraine and a ruling in favour of NJSC Ukrnafta
has been announced, although the full decision and written
judgement have not yet been delivered by the Court. The ruling
announced indicates that the grant of the Licence has been found to
be irregular, which would mean the Licence is invalid. However, the
ruling has not yet come into legal effect as the full decision and
written judgement have not yet been delivered by the Court.
Consequently, the Licence currently remains valid.
Once this decision and judgement have been received, the Company
will carefully review it with its legal advisers. Subject thereto,
Arkona intends to continue to defend the claims in these
proceedings and issue an appeal of this decision. The Company
considers Arkona has strong grounds for a successful appeal since
the subject matter of these legal proceedings, including the
validity of the Licence, has already been ruled upon by the Supreme
Court of Ukraine in similar proceedings in October 2019 involving,
inter alia, NJSC Ukrnafta and Arkona, and in which the Licence was
held to be valid.
Under the terms of the acquisition agreement for Arkona, half of
the consideration payable (split into two equal tranches) was
deferred and only payable on satisfaction of certain conditions
including the favourable resolution of these legal proceedings, as
well as certain other conditions, with the further proviso that if
the conditions for payment of these deferred tranches are not
satisfied, then neither of these tranches shall become payable.
A further update will be made once further information becomes
available.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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 / Richard Tulloch
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
Louise Mason-Rutherford / Elizabeth
Kittle
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.
END
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