Source: Sharecast
The British oil and gas exploration firm’s production licences for the Mekhediviska-Golotvshinska, Svyrydivske and Vasyschevskoye gas and condensate fields in Ukraine were first suspended in November 2024.
The orders were made under Ukrainian legislation which allows the State Geologic and Subsoil Survey of Ukraine to suspend or revoke hydrocarbon licences where the ultimate benefit owner is the subject of government sanctions.
Enwell has been fighting the suspension ever since, including launching arbitration proceedings in August.
In a third-quarter operations update on Thursday, chief executive Oleksiy Zayets said: "The continuing suspensions remain a very challenging and problematic situation for the group, and we are prioritising our efforts to find a resolution of the issue with the Ukrainian government.
"However, the limited progress towards a resolution left us little alternative than to seek to protect our business and assets through legal proceedings, and accordingly we are now pursuing legal action in Ukraine, and internationally through arbitration proceedings."
As at 30 September, Enwell’s cash resources were around $99.9m.
Enwell also holds the Svystunivsko-Chervonolutskyi exploration licence in Ukraine. The AIM-listed firm said development planning was continuing, as well as the installation of a new gas processing facilities and other surface infrastructure.
However, it cautioned: "In general, the operating environment in Ukraine remains very challenging.
"The company continues to be cautious and vigilant with its ongoing activities, and is taking the appropriate measures available to protect and safeguard its personnel and business."