- Enwell Energy
- 10 April 2025 13:20:41
Source: Sharecast
The AIM-traded firm said production at the MEX-GOL, SV and VAS licences ceased in January and February after Ukrainian courts overturned earlier interim rulings that had temporarily lifted licence suspension orders issued by the State Geologic and Subsoil Survey (SGSS).
It said the suspensions were based on the SGSS’s classification of the company’s ultimate beneficial owners - linked to Cypriot trustees named in Ukrainian sanctions - as being subject to restrictive measures under national security legislation.
During the partial period in which production was permitted, average daily output across the fields was eight million cubic feet of gas, 445 barrels of condensate, and no LPG, for a combined 1,865 barrels of oil equivalent per day - down from 2,128 equivalent daily barrels in the first quarter of 2024.
The MEX-GOL and SV fields operated for only 23 days of the quarter, and the VAS field for 58 days.
No LPG was produced during the period due to administrative delays in licence issuance.
At the SC exploration licence, which remained unaffected by the regulatory action, planning work continued, including the assessment of gas processing infrastructure and connection options.
Enwell confirmed its cash position as at 31 March stood at $101.8m, largely held in Ukrainian hryvnia, with the remainder in major foreign currencies.
The company said it was continuing to challenge the suspensions through the Ukrainian courts, and was consulting with legal and regulatory advisers to explore all options for reinstating operations.
Enwell stressed the continued challenging operating environment in Ukraine, and reaffirmed its commitment to safeguarding its personnel and assets.
“The operating environment in Ukraine remains extremely difficult as a result of the war, as well as the challenging regulatory environment,” said chief executive officer Oleksiy Zayets.
“We are very disappointed with the suspension orders in respect of our MEX-GOL, SV and VAS licences, and hope that a resolution of these issues can be found.”
At 1132 BST, shares in Enwell Energy were down 6.68% at 17.27p.
Reporting by Josh White for Sharecast.com.