REG - Enwell Energy PLC - Suspension of VAS and SC Licences

Enwell EnergyAnnouncement

04/05/2023 17:45

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RNS Number : 4920Y  Enwell Energy PLC  04 May 2023

 

4 May 2023

 

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

 

Suspension of VAS and SC Licences

 

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and
production group, advises that the State Geologic and Subsoil Survey of
Ukraine (the "SGSS") has today issued orders to suspend the Company's
Vasyschevskoye ("VAS") production licence and Svystunivsko-Chervonolutskyi
("SC") exploration licence in Ukraine.

 

As announced earlier today, the Ministry of Justice of Ukraine made Orders
(the "MoJ Orders") on 2 May 2023 cancelling the registration entry made on
behalf of three Ukrainian subsidiaries of the Company named LLC Prom-Enerho
Produkt, LLC Arkona Gas-Energy and LLC Well Investum respectively in the
Unified State Register of Legal Entities, Individuals-entrepreneurs and Civil
Institutions of Ukraine (the "State Register") relating to the ultimate
beneficial owners of such companies. The registration entry for each of these
companies 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 MoJ Orders removed
each such registration entry and restored the previous entry in the State
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. LLC
Prom-Enerho Produkt holds the VAS production licence, LLC Arkona Gas-Energy
holds the SC exploration licence and LLC Well Investum is a dormant company.

 

Under recent legislation, specifically Law No. 2805-IX, which came into force
on 28 March 2023 (see the Company's announcements dated 4 January 2023 and 28
April 2023), the SGSS has legislative powers to suspend and/or revoke
hydrocarbon licences of which the ultimate beneficial owner is the subject of
Ukrainian Government sanctions. As announced on 9 December 2022, the Ukrainian
Government imposed sanctions on Vadym Novynskyi, who previously held a major
indirect shareholding interest in the Company, but ceased to do so on 1
December 2022 as referred to above. However, following the issuance of the MoJ
Orders, Vadym Novynskyi is now registered in the State Register as the
ultimate beneficial owner of each of LLC Prom-Enerho Produkt and LLC Arkona
Gas-Energy, and is consequently recognised by the SGSS as the ultimate
beneficial owner of each of the VAS production licence and SC exploration
licence. As a result, the SGSS today issued suspension orders in respect of
each of the VAS production licence and SC exploration licence for a period of
5 years effective today. Accordingly, the Company is ceasing field operations
on the VAS licence, including shutting down production at the field, which
currently contributes approximately 12% of the Group's production. Field
activities on the SC licence area were already and will remain suspended.

 

The Company continues to consult with its legal advisers, including on the
above matters, in order to protect its assets, and further information will be
announced in due course.

 

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 by virtue of
the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

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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