Enwell Energy plc, an AIM-quoted oil and gas exploration and production group, has provided an update on its operational activities in Ukraine. The ongoing war in Ukraine has caused disruption to the company's fields, and recent regulatory actions by the Ukrainian authorities have resulted in the suspension of the Vasyschevskoye (VAS) and Svystunivsko-Chervonolutskyi (SC) licences. As a result, there has been a loss of production from the VAS field. The average daily production of gas, condensate, and LPG from the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV), and VAS fields in Q3 2023 was 9.4 MMcf/d of gas, 358 bbl/d of condensate, and 323 bbl/d of LPG, with an aggregate boepd of 2,248.
Production operations are continuing at the MEX-GOL and SV fields, with a current production rate of approximately 2,200 boepd. However, there have been disruptions to the supply of equipment, fuel, and electricity, causing delays to some activities. The GOL-107 well, targeting production from the V-20 and V-23 horizons in the Visean formation, has been drilled to a final depth of 5,190 meters. Initial testing of the well will now be undertaken to determine its productivity.
All operations at the VAS field and SC exploration licence area have been suspended following orders from the State Geologic and Subsoil Survey of Ukraine (SGSS) on May 4, 2023. The company is taking measures to protect and safeguard its personnel and business, prioritizing their safety and well-being.
Enwell Energy has cash resources of approximately $72.9 million as of September 30, 2023, with $51.4 million equivalent in Ukrainian Hryvnia and the balance in a combination of US Dollars, Pounds Sterling, and Euros. Gas sales in Ukraine have remained weak due to the war, although prices improved moderately during Q3 2023. The company now sells all of its gas directly to off-takers.
Enwell Energy has engaged Zenith Audit Ltd as its new auditor for the audit of its financial statements. The company expects the completion of the 2022 Accounts in Q4 2023. Trading in the company's ordinary shares on AIM was suspended on July 3, 2023, due to the lack of an auditor. The suspension is expected to be lifted upon publication and posting of the 2022 Accounts and the company's interim results for the six-month period ended June 30, 2023.
The Vasyschevskoye (VAS) production licence and Svystunivsko-Chervonolutskyi (SC) exploration licence have been suspended by the State Geologic and Subsoil Survey of Ukraine (SGSS) since May 4, 2023, following action by the Ministry of Justice of Ukraine (MoJ) on May 2, 2023.