Enwell Energy PLC SC Licence Update (2406J)
August 20 2021 - 1:00AM
UK Regulatory
TIDMRPT
RNS Number : 2406J
Enwell Energy PLC
20 August 2021
20 August 2021
Enwell Energy plc
("Enwell" or the "Company")
SC Licence Update
Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas
exploration and production group, is pleased to announce an update
on its operations at the Svystunivsko-Chervonolutskyi exploration
licence (the "SC Licence").
The Company's first well at the SC Licence, SC-4, has now been
spudded. 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 Company has agreed a variation to the payment
terms for the acquisition of LLC Arkona Gas-Energy ("Arkona"),
which holds the SC Licence, and which was acquired by the Company
in March 2020 (see announcement dated 24 March 2020) . The Company
acquired a 100% shareholding interest in Arkona for aggregate
consideration of up to $8,630,000, comprising: (i) a first tranche
of $4,315,000 (less certain adjustments for debt liabilities) paid
on completion; (ii) a second tranche of $2,157,500 payable on
satisfaction of certain conditions, which have now been satisfied;
and (iii) a third tranche of $2,157,500 payable after 12 months
from the date of payment of the second tranche. The agreement for
the a cquisition (the "Acquisition Agreement") contains
representations, warranties and indemnities, which are customary
for this type of transaction and entitle the Company to defer
consideration payments and/or seek recovery of previously paid
tranches of consideration in the event of a breach of the
Acquisition Agreement. T he second tranche of the consideration was
paid in March 2021, and consequently, the third tranche is payable
in March 2022. However, in recognition of the progress that has
been made towards the commencement of exploration and appraisal of
the SC Licence and the fact that the second tranche of the
consideration became payable later than originally expected, the
Company and the vendors of Arkona have agreed to an early payment
of 25% of the third tranche of the consideration, totalling
$539,375, at this time, rather than in March 2022. Accordingly a
Deed of Variation to the Acquisition Agreement has been entered
into by the Company and such vendors to reflect this variation.
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
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.
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END
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