REG - Enwell Energy PLC - Q3 2025 Operations Update

Enwell EnergyAnnouncement

10/10/2025 07:00

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RNS Number : 8230C  Enwell Energy PLC  10 October 2025

10 October 2025

 

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

 

Q3 2025 Operations Update

 

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and
production group, provides an update on its operational activities in Ukraine
in respect of its Mekhediviska-Golotvshinska ("MEX-GOL"), Svyrydivske ("SV")
and Vasyschevskoye ("VAS") gas and condensate fields and
Svystunivsko-Chervonolutskyi ("SC") exploration licence.

 

Production - Q3 2025

 

The MEX-GOL, SV and VAS production licences are currently suspended and
accordingly there was no production from those licences in the third quarter,
nor at present. Further details on the suspensions are set out below.

 

Operations

 

At the SC exploration licence area, development planning is continuing,
including planning for the installation of new gas processing facilities and
other surface infrastructure as well as assessing the feasibility of an
alternative option of a connection to existing gas processing facilities.

 

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. The safety and wellbeing of its personnel and
contractors is paramount and the Company will continue to take all possible
steps to ensure their safety.

 

Cash Holdings

 

At 30 September 2025, the Company's cash resources were approximately US$99.9
million, comprised of US$83.9 million equivalent in Ukrainian Hryvnia and the
balance of US$16.0 million equivalent in a combination of US Dollars, Pounds
Sterling and Euros.

 

Suspension of MEX-GOL, SV and VAS Licences

 

As announced on 18 November 2024, the State Geologic and Subsoil Survey of
Ukraine (the "SGSS") issued orders dated 15 November 2024 to suspend the
MEX-GOL, SV and VAS production licences. These orders were made pursuant to
Ukrainian legislation, specifically Law No. 2805-IX, under which the SGSS has
legislative powers to suspend and/or revoke hydrocarbon licences where the
ultimate beneficial owner is the subject of Ukrainian Government sanctions.

 

As announced on 11 October 2024, a Decree of the President of Ukraine numbered
698/2024 and dated 8 October 2024 (the "Decree"), made pursuant to a
resolution of the National Security and Defence Council of Ukraine dated 8
October 2024, entitled "On application of personal special economic and other
restrictive measures (sanctions)", was implemented, pursuant to which personal
special economic and other restrictive measures (sanctions) were applied to,
inter alia, Proteas Trustee Services Limited and Proteas Trustees Limited (as
well as their respective shareholders Andreas Sophocleous and Konstantina
Alkiviadous), Elena Iona and Afrodite Loukiadou, who are trustees of Cypriot
Trusts (the "Trustees") that hold a major indirect shareholding interest in
the Company.

 

Under Ukrainian legislation, the Company's subsidiary companies which own its
hydrocarbon licences in Ukraine, namely Regal Petroleum Corporation Limited in
the case of the MEX-GOL and SV production licences and LLC Prom-Enerho Produkt
in the case of the VAS production licence, are required to register their
respective ultimate beneficial owners in the Unified State Register of Legal
Entities, Individuals-entrepreneurs and Civil Institutions of Ukraine (the
"State Register"). The registration entries for each of these companies stated
that their ultimate beneficial owners are the Trustees, based on the
notifications made by the Trustees to the Company.

 

As a consequence of such registrations in the State Register, the SGSS
recognises the Trustees as the ultimate beneficial owners of the MEX-GOL, SV
and VAS production licences. As a result, the SGSS issued the suspension
orders dated 15 November 2024 in respect of each of the MEX-GOL, SV and VAS
production licences for a period of 10 years effective from 8 October 2024
(being the date of the Decree).

 

As announced on 26 November 2024, the Company issued legal proceedings in the
Poltava District Administrative Court in Ukraine to challenge such orders, and
within such proceedings, the Company obtained interim rulings (the "Interim
Rulings") to lift such suspension orders pending determination of the
substantive issues in the legal proceedings. The SGSS appealed against the
Interim Rulings in the Second Appeal Administrative Court in Ukraine. By a
decision dated 22 January 2025, the appeal against the Interim Ruling relating
to the MEX-GOL and SV licences was allowed, and by a decision dated 27
February 2025, the appeal against the Interim Ruling relating to the VAS
licence was also allowed. As a result, the respective suspension orders in
respect of the MEX-GOL, SV and VAS licences were reinstated, and the Company
ceased all field operations on those licences immediately following the
respective appeal decisions.

 

In addition, as announced on 27 August 2025, the Company issued arbitration
proceedings against Ukraine under the Agreement Between the Government of the
United Kingdom of Great Britain and Northern Ireland and the Government of
Ukraine for the Promotion and Reciprocal Protection of Investments (the
"Treaty"). The Treaty is an international treaty designed to protect the
rights of investors from the United Kingdom or Ukraine who make investments in
the other country. The arbitration proceedings have been registered by the
International Centre for Settlement of Investment Disputes ("ICSID"), and
within such proceedings, the Company is claiming monetary damages for the loss
and damage it has suffered as a result of Ukraine's actions, as well as the
reinstatement of its MEX-GOL, SV and VAS licences for the remainder of their
respective durations, and its costs.

 

The Company is continuing legal proceedings and other initiatives, in
consultation with its external legal and other advisers, seeking to mitigate
the risks associated with the regulatory actions of the Ukrainian authorities.

 

Oleksiy Zayets, CEO, commented: "The continuing suspensions of our MEX-GOL, SV
and VAS licences 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 under
the bilateral investment treaty between the United Kingdom and Ukraine."

 

 

For further information, please contact:

 

 Enwell Energy plc                  Tel: 020 3427 3550
 Chuck Valceschini, Chairman
 Oleksiy Zayets, CEO
 Bruce Burrows, Finance Director

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

 Zeus Capital Limited               Tel: 020 7614 5900
 Oscar Stack (Corporate Finance)
 Simon Johnson (Corporate Broking)

 Citigate Dewe Rogerson             Tel: 020 7638 9571
 Luna Habte

 

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.

 

Dr Gehrig Schultz, BSc Geophysical Engineering, PhD Geophysics, Member of the
European Association of Geophysical Engineers, Member of the Executive
Coordinating Committee of the Continental European Energy Council, and a
Non-Executive 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 for Companies.

 

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