REG - Enwell Energy PLC - Regulatory Actions by Ukrainian Authorities

Enwell EnergyAnnouncement

12/04/2023 16:15

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RNS Number : 0179W  Enwell Energy PLC  12 April 2023

12 April 2023

 

 

Enwell Energy plc
("Enwell" or the "Company")

 

Regulatory Actions by Ukrainian Authorities

 

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and
production group, advises on regulatory actions taken by Ukrainian Authorities
against some of the Company's group companies in Ukraine.

 

On 10 April 2023, the Security Services of Ukraine (the "SBU") conducted a
search at the Company's Yakhnyky office, from where the MEX-GOL and SV fields
are operated. The search was carried out in connection with a pre-trial
investigation relating to criminal proceedings concerning the circumstances
surrounding the restructuring of the PJSC Smart Holding Group (as referred to
in the Company's announcement on 17 January 2023), including the change to the
indirect majority shareholder of the Company, such change being notified to
the Company and published to the market on 26 January 2023. In the course of
the search, the SBU removed a number of documents.

 

Subsequent to the search, the Yakhnyky office received rulings made by the
Shevchenko District Court of Kyiv against two group companies, (i) the
Ukrainian branch (representative) office of Regal Petroleum Corporation
Limited, which operates the Mekhediviska-Golotvshinska (MEX-GOL) and
Svyrydivske (SV) fields, and (ii) LLC Arkona Gas-Energy, which holds the
Svystunivsko-Chervonolutskyi (SC) exploration licence. The rulings place
certain physical assets of each company under seizure, with the effect that
there is a restriction on carrying out any actions that would change
registration of the property rights relating to such assets. However, the use
of such assets is not restricted and therefore the Company is able to continue
to operate and produce gas and condensate from these licences. The assets
specified in the rulings are (i) the office premises at Yakhnyky and the wells
at the MEX-GOL and SV fields in respect of the Ukrainian branch
(representative) office of Regal Petroleum Corporation Limited, and (ii) the
SC-4 well at the SC exploration licence in respect of LLC Arkona Gas-Energy.
The grounds for these rulings are not yet known as only the operative parts of
the rulings have been provided to the Company.

 

In addition, the Ministry of Justice of Ukraine has made an Order cancelling
the registration entry made on behalf of a subsidiary of the Company named
Regal Petroleum Corporation (Ukraine) Limited LLC in the Unified State
Register of Legal Entities, Individuals-entrepreneurs and Civil Institutions
of Ukraine relating to the ultimate beneficial owners of such company. The
registration entry stated the ultimate beneficial owners to be the beneficial
owners of the indirect majority shareholder of the Company as notified to the
Company and published to the market on 26 January 2023, but the Order made by
the Ministry of Justice removed such registration entry and restored the
previous entry in such Register, Vadym Novynskyi. As announced on 26 January
2023, the Company was notified that Vadym Novynskyi ceased holding a
beneficial interest in the indirect majority shareholder of the Company on 1
December 2022.

 

Furthermore, the State Geological Agency (the "SGA") has legislative powers to
require holders of hydrocarbon licences to provide additional information
and/or eliminate violations in their disclosures relating to the ultimate
beneficial owners of such licences within certain timeframes.  The SGA has
today issued an Order to the Ukrainian branch (representative) office of Regal
Petroleum Corporation Limited requiring that additional information be
provided and/or violations be eliminated by 1 June 2023 in the disclosures
relating to the ultimate beneficial owners of the MEX-GOL and SV licences
respectively.

 

The Company is now consulting with its legal advisers to understand the
implications of all of the above matters, and further information will be
announced once such information is available.

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018, as amended.

 

For further information, please contact:

 

 Enwell Energy plc                              Tel: 020 3427 3550
 Chris Hopkinson, Chairman
 Sergii Glazunov, Chief Executive Officer
 Bruce Burrows, Finance Director

 Strand Hanson Limited                          Tel: 020 7409 3494
 Rory Murphy / Matthew Chandler

 Zeus Capital Limited                           Tel: 020 7614 5900
 Alexandra Campbell-Harris (Corporate Finance)
 Simon Johnson (Corporate Broking)

 Citigate Dewe Rogerson                         Tel: 020 7638 9571
 Ellen Wilton

 

 

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