Enwell Energy PLC, an AIM-quoted oil and gas exploration and production group, has provided a quarterly operations update on its activities in Ukraine. The update covers the Mekhediviska-Golotvshinska ("MEX-GOL"), Svyrydivske ("SV"), and Vasyschevskoye ("VAS") gas and condensate fields, as well as the Svystunivsko-Chervonolutskyi ("SC") exploration license.
During Q2 2024, the average daily production of gas, condensate, and LPG from the MEX-GOL, SV, and VAS fields was reported. The ongoing war in Ukraine has caused disruptions to operations, and adverse regulatory actions negatively impacted the company's operations, particularly the loss of production from the VAS field. However, the suspensions of the VAS and SC licenses were lifted on 26 June 2024, and production from the VAS field is expected to resume in Q3 2024.
Production operations are continuing at the MEX-GOL and SV fields, with an aggregate production rate of approximately 2,000 boepd. However, disruptions to the supply of equipment, fuel, and electricity have caused delays to some activities. Operations at the VAS field and SC exploration license area remained suspended until the recent cancellation of the suspension orders on 26 June 2024.
As of 30 June 2024, the company's cash resources were approximately $93.7 million, with a significant portion in Ukrainian Hryvnia. Oleksiy Zayets, Interim CEO, expressed the company's cautious optimism, stating, "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 licenses is very welcome news."
Enwell Energy PLC continues to prioritize the safety and wellbeing of its personnel and contractors, taking all possible measures to ensure their safety. The company is preparing to resume production operations at the VAS field and plan further development activities at the SC exploration license area.
This announcement contains inside information and has been reviewed and approved by Dr. Gehrig Schultz, a Non-Executive Director of the Company, in his capacity as a qualified person, as required under the AIM Rules for Companies.