REG - Enwell Energy PLC - Reserves & Resources Update

Enwell EnergyAnnouncement

02/06/2021 07:05

RNS Number : 4973A
  
Enwell Energy PLC
  
02 June 2021
  
 

2 June 2021
Enwell Energy plc
("Enwell" or the "Company")
 
Reserves & Resources Update
 
Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and production group, is pleased to announce an update on its hydrocarbon Reserves and Contingent Resources at its wholly owned and operated, via LLC Arkona Gas-Energy, Svystunivsko-Chervonolutskyi (SC) exploration licence in Ukraine.
 
Enwell engaged independent petroleum consultants, DeGolyer and MacNaughton, to prepare an assessment of the remaining Reserves and Contingent Resources attributable to the SC exploration licence as of 1 January 2021 (the "Report"). The Report is consistent with Enwell's current field development plans, and accords with the March 2007 (as revised in June 2018) SPE/WPC/AAPG/SPEE Petroleum Resources Management System standard for classification and reporting.   
 
The Report estimates the remaining Reserves as of 1 January 2021 in the SC licence as follows:
 



 
 


Proved 
(1P)


Proved + Probable 
(2P)


Proved + Probable + Possible (3P)




 
Gas 
 


17.20 Bscf / 0.49 Bm3 


65.16 Bscf / 1.85 Bm3


85.03 Bscf / 2.41 Bm3




 
Condensate
 


145 Mbbl / 16 Mtonne


548 Mbbl / 61 Mtonne


716 Mbbl / 80 Mtonne




 
Total
 


3.2 MMboe


12.1 MMboe


15.7 MMboe



 
The Report estimates the Contingent Resources as of 1 January 2021 in the SC licence as follows:
 



 
 


Contingent Resources (1C)


Contingent Resources (2C)


Contingent Resources (3C)




 
Gas 
 


8.56 Bscf / 0.24 Bm3


14.18 Bscf / 0.40 Bm3


81.16 Bscf / 2.30 Bm3




 
Condensate
 


72 Mbbl / 8 Mtonne


119 Mbbl / 13 Mtonne


682 Mbbl / 75 Mtonne




 
Total
 


1.6 MMboe


2.6 MMboe


15.0 MMboe



 
 
The SC licence is located in the Poltava region in north-eastern Ukraine, approximately 15 km east of the Company's producing Svyrydivske ("SV") field, and has similar characteristics to the SV field. The licence was granted in May 2017, with a duration of 20 years, and extends over an area of 97 km2. 
 
The licence is prospective for gas and condensate, and has been the subject of exploration since the 1980s, with five wells having been drilled on the licence since then, although none of these are currently on production. As with the productive reservoirs in the SV field, the prospective reservoirs in the licence comprise a series of gently dipping Carboniferous sandstones of Visean age inter-bedded with shales at depth between 4,600 and 6,000 metres. Geologically, the licence is located towards the middle of the Dnieper-Donets sedimentary basin which extends across the major part of north-eastern Ukraine. The vast majority of Ukrainian gas and condensate production comes from this basin. 
 
The Report is consistent with the Company's proposed field development plan for the licence, which includes the acquisition of 150 km2 of 3D seismic and the drilling of the SC-4 well, both activities scheduled to commence later this year, and the construction of a gas processing plant. Development will then continue with the drilling of a further six wells to recover the reserves and resources in the licence. Due to their targeted depths, the wells are each likely to take approximately 12 months to complete, and are intended to be drilled consecutively over the next eight years. 
 
Sergii Glazunov, Enwell's Chief Executive Officer, said: "Based on this independent assessment, a material volume of Reserves and Contingent Resources has been estimated in our SC licence. With the confidence that this independent assessment provides, we have been progressing with our field development plan to recover the reserves and resources in the licence, and based on such work, we are optimistic about the future prospects for the development of the licence."
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.
 
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


















Arden Partners plc


Tel: 020 7614 5900




Ruari McGirr / Dan Gee-Summons (Corporate Finance)








Simon Johnson (Corporate Broking)


















Citigate Dewe Rogerson


Tel: 020 7638 9571




Elizabeth Kittle







 
 
Dmitry Sazonenko, MSc Geology, MSc Petroleum Engineering, Member of AAPG, SPE and EAGE, Director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM Rules.
 
 



Definitions


















AAPG


American Association of Petroleum Geologists




bbl 


barrel




Bm3


thousands of millions of cubic metres




boe


one barrel of oil, plus (i) gas converted to oil equivalent using a conversion rate of 5,661 standard cubic feet of gas for each barrel of oil equivalent; and (ii) condensate converted to oil equivalent using a conversion rate of one barrel of condensate for each barrel of oil equivalent




Bscf


thousands of millions of standard cubic feet




gas


sales gas (meaning the total quantity of gas to be produced from the reservoirs, measured at the point of delivery, after reduction for field separation, usage, and other losses)




km2


square kilometre 




km 


kilometre




m3


cubic metre




Mbbl


thousand barrels




MMboe


million barrels of oil equivalent




Mtonnes


thousand tonnes




scf


standard cubic feet measured at 20 degrees celsius and one atmosphere




SPE


Society of Petroleum Engineers




SPEE


Society of Petroleum Evaluation Engineers




WPC


World Petroleum Council



 
 
The SPE/WPC/AAPG/SPEE Petroleum Resources Management System document, which includes definitions of Reserves and Contingent Resources categorisations, can be viewed at:
 
www.spe.org/industry/reserves.php
 

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