British Pennpetro Energy enters the Ukrainian gas production sector

The British company Pennpetro Energy Plc has announced the signing of a Heads of Terms agreement to acquire 100% of the rights to the Limnytskyi oil and gas license in the Ivano-Frankivsk region. This was reported in a company statement published on the London Stock Exchange, where Pennpetro Energy shares are listed, according to ExPro.

Purchase agreement

The document provides for the company’s intention to enter the Ukrainian oil and gas production sector through a holding structure established in Poland.

Pennpetro stated that the agreement is at a preliminary stage. It includes legal, financial, and technical due diligence, coordination with regulators, and the subsequent signing of a final purchase and sale agreement. Completion of the transaction will require approval from Pennpetro shareholders and the London Stock Exchange.

After obtaining control over the license, the company plans to restore a previously suspended well, conduct 3D seismic studies, and drill a new well to confirm commercial reserves.

Stephen Lunn, Chairman of Pennpetro Energy said: "Securing the Heads of Terms for the Limnytskyi licence in Ukraine is transformational for our business, it adds a highly exciting asset into our growing portfolio and the opportunity to develop this into a producing field to aid energy independence, sovereignty and security to Ukraine. The capital requirements upon Pennpetro associated with this licence are minimal and there is significant potential upside to the Company."

Limnytskyi license

The Limnytskyi oil and gas license is located in the Carpathian oil and gas basin in the Ivano-Frankivsk region. The area covers 172 sq. km. Special permit No. 2971 for the exploration and production of oil and gas in the Limnytska field was issued in 2007 to Geoposhuk Ltd, which remains the current subsoil user after the recent cancellation of the order by the Ukrainian Geological Survey to revoke the license.

Russian connection

In April 2023, the Ukrainian Geological Survey filed a lawsuit against Geoposhuk Ltd with the Ivano-Frankivsk District Administrative Court demanding the annulment of special permit No. 2971. The grounds were that one of the company’s ultimate beneficial owners was allegedly a Russian citizen, which, according to amendments to the Subsoil Code (Law No. 2805-IX), is incompatible with the right to use Ukrainian subsoil. According to Nadra.Info, this likely referred to Oleksandr Yeltsov, who resided in the Czech Republic.

In July 2023, the court of first instance granted the claim and declared the license invalid. In February 2024, the Eighth Administrative Court of Appeal upheld this decision. Based on these rulings, the Ukrainian Geological Survey issued Order No. 63 dated February 15, 2024, annulling the permit.

However, on April 30, 2025, the Supreme Court overturned the previous decisions, ruling that the revocation had been carried out in violation of the law. The court noted that the state authority had not given the company the opportunity to remedy the identified violations and had failed to prove any actual control by a Russian citizen. In accordance with the Supreme Court’s decision, on May 5, 2025, the Ukrainian Geological Survey issued Order No. 157, canceling the previous order on annulment. Thus, special permit No. 2971 for the Limnytska area was reinstated and confirmed as valid.

Who is Pennpetro Energy?

Pennpetro Energy Plc is a public company registered in 2016 in England and Wales. The company is engaged in oil and gas exploration and production, focusing on onshore projects in Texas (USA), particularly in Gonzales County, where it holds rights to more than 2,500 acres. Pennpetro operates through several subsidiaries, including Pennpetro USA Corp., Nobel Petroleum LLC, and Pennpetro Greentec UK Limited.

The company’s shares were traded on the London Stock Exchange under the ticker PPP. In 2024, Pennpetro reported revenue of around £0.5 million with a net loss of £8.9 million. Recently, the company has also been involved in joint gas and lithium exploration projects, notably through its partnership with Globalvision International LDA.

Where to find natural gas market analytics?

Detailed analytics of the natural gas market in Ukraine, including production, imports, exports, UGS reserves, trading results, natural gas prices, key news, etc., are published in specialized publications ExPro Daily Gas, ExPro Gas&Oil Weekly, and ExPro Gas&Oil Monthly.

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