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RNS Number : 6458W Enwell Energy PLC 17 July 2024
17 July 2024
Enwell Energy plc
("Enwell" or the "Company")
Quarterly Operations 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
in respect of its Mekhediviska-Golotvshinska ("MEX-GOL"), Svyrydivske ("SV")
and Vasyschevskoye ("VAS") gas and condensate fields and
Svystunivsko-Chervonolutskyi ("SC") exploration licence.
Production - Q2 2024
The average daily production of gas, condensate and LPG from the MEX-GOL, SV
and VAS fields over the period from 1 April 2024 to 30 June 2024 was as
follows:
Field Gas Condensate LPG Aggregate
(MMcf/d) (bbl/d) (bbl/d) boepd
Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023
MEX-GOL & SV 8.6 9.6 320 373 271 392 2,025 2,351
VAS - 1.6 - 15 - - - 308
Total 8.6 11.2 320 388 271 392 2,025 2,659
The ongoing war in Ukraine continues to cause disruption to operations at the
Company's fields, and the adverse regulatory actions taken by the Ukrainian
authorities, culminating in suspension of the VAS and SC licences on 4 May
2023, similarly negatively impacted the Company's operations during the
period, most notably by the loss of production from the VAS field. However,
the suspensions of these licences were lifted on 26 June 2024 and production
from the VAS field is expected to resume in Q3 2024. Production volumes at the
MEX-GOL and SV fields were lower when compared with Q2 2023 predominantly due
to natural field decline. The Q2 2023 comparative average production figures
for the VAS field are based on the days that the field was actually in
production during the quarter, namely 34 days, due to the suspension of the
VAS licence on 4 May 2023.
Operations
Production operations are continuing at the MEX-GOL and SV fields, and,
currently, the aggregate production rate is approximately 2,000 boepd. Field
operations are currently continuing relatively normally, but there have been
disruptions to the supply of equipment and fuel, as well as interruptions to
the electricity supply, which has caused delays to some activities. In
general, the operating environment in Ukraine remains very challenging.
At the VAS field and SC exploration licence area, operations remained
suspended as a result of the suspension orders made by the State Geologic and
Subsoil Survey of Ukraine (the "SGSS") on 4 May 2023, until the SGSS made
further orders on 26 June 2024 to cancel such suspension orders. Further
details are set out in the Company's announcements dated 4 May 2023 and 27
June 2024. Accordingly, the Company is now preparing to resume production
operations at the VAS field, and planning further development activities at
the SC exploration licence area.
The Company continues to be cautious and vigilant with its ongoing operations
and is taking the appropriate measures available to protect and safeguard its
personnel and business. The safety and wellbeing of its personnel and
contractors is paramount and the Company will continue to take all possible
steps to ensure their safety.
Cash Holdings
At 30 June 2024, the Company's cash resources were approximately $93.7
million, comprised of $75.3 million equivalent in Ukrainian Hryvnia and the
balance of $18.4 million equivalent in a combination of US Dollars, Pounds
Sterling and Euros.
Oleksiy Zayets, Interim CEO, commented: "The operating environment in Ukraine
remains extremely challenging as a result of the war, but the recent lifting
of the suspension orders affecting the VAS and SC licences is very welcome
news. We are pleased to be able to continue our production operations at the
MEX-GOL and SV fields, and hope to resume operations at the VAS field and SC
exploration licence area shortly."
For further information, please contact:
Enwell Energy plc Tel: 020 3427 3550
Chuck Valceschini, Chairman
Oleksiy Zayets, Interim CEO
Bruce Burrows, Finance Director
Strand Hanson Limited Tel: 020 7409 3494
Rory Murphy / Matthew Chandler
Zeus Capital Limited Tel: 020 7614 5900
Alexandra Campbell-Harris (Corporate Finance)
Simon Johnson (Corporate Broking)
Citigate Dewe Rogerson Tel: 020 7638 9571
Ellen Wilton
Alex Winch
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, as amended by virtue of
the Market Abuse (Amendment) (EU Exit) Regulations 2019.
Dr Gehrig Schultz, BSc Geophysical Engineering, PhD Geophysics, Member of the
European Association of Geophysical Engineers, Member of the Executive
Coordinating Committee of the Continental European Energy Council, and a
Non-Executive Director of the Company, has reviewed and approved the technical
information contained within this announcement in his capacity as a qualified
person, as required under the AIM Rules for Companies.
Definitions
bbl/d barrels per day
boepd barrels of oil equivalent per day
cf cubic feet measured at 20 degrees Celsius and one atmosphere
LPG liquefied petroleum gas
MMcf/d million cubic feet per day
$ US Dollars
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