Enwell Energy increased its hydrocarbon production by 8% in the first half of 2020
The British Enwell Energy plc, part of the Smart Energy Group, increased its total average daily production of hydrocarbons by about 8% in the six months of 2020, and the company’s revenue reduced by 21.1%, the message of the press service of Enwell Energy for the London stock exchange, AIM, reads.
The company notes that the increase in production in the 1st half of this year compared to the 1st half of 2019 was possible due to the commissioning of well No. 119 at the Mekhedivsko-Golotovschynske field in October last year and well No. 54 at the Svyrydivske field in May this year. At the same time, production at the Vasyshchivske field is lower than last year due to a decrease in the productivity of well No. 10.
Revenue for the reporting period was $24.7 million as compared to $31.3 million in the corresponding period last year. Also in the first half of this year, operating income reduced to $5.2 million compared to $13.7 million in the same period last year. Net income was $ 1.2 million, $9.9 million less than in the first half of 2019. The negative dynamics of financial indicators is associated with a significant drop in gas prices (-46%), reinforced by the seasonal factor of warm winter and, consequently, overfilled gas storage facilities.
At Svyrydivske field in the Poltava region, the company continues to drill well No. 25 and is considering drilling a new well or a sidetrack in an existing well in the future. It is also studying the need for capital workovers at its assets in the Poltava region, plans to install compressor equipment, and make new investments in upgrade of gas and condensate treatment facilities, pipeline network, and other infrastructure. A new exploration well is planned at the Vasyshchivske field in the Kharkiv region. It is designed to study the production prospects at the Vvedenska structure, and the installation of compressor equipment, new investments in the modernization of gas and condensate treatment facilities and infrastructure. The start of development of Svistunkivske-Chervonolutske field is anticipated.