Enwell Energy increased its average daily production rate by 19% in Q3 2020
British Company Enwell Energy plc, a part of Smart Energy, for Q3, 2020 has increased its average daily production rate of hydrocarbons approximately by 19% in comparison with the same period of 2019, reports the official announcement by Enwell Energy at the AIM Market of the London Stock Exchange.
As the Press Office of the company admitted, the launching of the well # 54 at Svyrydivske field in May 2020 has become the significant boost for the joint production growth. However, a decline in production rates from the well #10 at Vasyshchivske field affected overall production at the field in 2020. Consequently, during Q1 2020, the compression equipment has been installed in order to stabilise production from the well. Moreover, during Q1 2021, the company are to perform major repairs of the well to access an alternative reservoir horizon.
Moreover, Enwell Energy continues drilling the well #25 on Svyrydivske field. At the current point, the depth of the well has reached approximately 4,875 metres. Its target depth is 5,320 metres, with drilling operations to be completed by the end of the first quarter of 2021. At Vasyshchivske field, it is planned to continue for a new well to explore the opportunities of the Vvdenska within the licence area.
As it was reported earlier, on March 24, 2020, the company has acquired the entire issued share capital of LLC Arkona Gas-Energy, which holds Svystunkivsko-Chervonolutske exploration licence. Nevertheless, the previous license holder, PJSC Ukrnafta, filed the claim to the court, stating that irregular procedures were followed in the grant of the licence to Arkona. In early July 2020, the First Instance Court in Ukraine made a ruling in favour of Ukrnafta, admitting that the grant of the Licence was irregular. Meanwhile, on September 29, 2020, the Appellate Administrative Court carried out its decision in favour of Arkona, overturning the earlier decision of the First Instance Court.
As of September 30, 2020, the company’s cash resources were approximately $55.7 million, comprised of $15.8 million equivalent in Ukrainian Hryvnia and the balance of $39.9 million equivalent in a combination of US Dollars, Pounds Sterling and Euros.
Enwell Energy continues to monitor the evolving situation relating to the COVID-19 pandemic, and to take any steps necessary in order to protect its staff and operations. However, as of the date hereof, there has been no operational disruption linked to the COVID-19 pandemic, and no material impact is currently envisaged on the prospects. Nevertheless, Enwell Energy remains acutely aware of the risks, and is taking action to mitigate them as much as possible, with the prioritising the safety of individuals and communities.
Enwell Energy plc (ex-Regal Petroleum plc) is a British AIM-quoted public company, holds 100% of the working interests in the companies that operate in Ukraine: Regal Petroleum Corporation Limited (the Representative Office is registered in Ukraine) and Arkona Gas-Energy LLC that are operating in Poltava region as well as Prom-Energo Produkt LLC, working in Kharkiv region. The companies own special license for production of hydrocarbons and are part Smart Energy Group.
Whereas, Smart Energy Group is a part of Smart-Holding, in charge of implementing exploration projects and commercial development of the hydrocarbon deposits. I
n addition, the assets of Regal Petroleum, Oil & Gas business block of Smart Energy performs the gas producing by Ukrgazvydobutok (Kharkiv region).