IN BRIEF: Enwell Energy anticipates lower revenue due to damaged wells

Enwell Energy PLC - oil and gas explorer in Ukraine - Says operations on its SV-29 development ...

Alliance News 29 November, 2021 | 2:22PM
Email Form Facebook Twitter LinkedIn RSS

Enwell Energy PLC - oil and gas explorer in Ukraine - Says operations on its SV-29 development well were delayed for a period due to a shortage of materials required for the operations. Asserts that supplies have now improved and progress has been done. Adds that at the SC licence, drilling of its SC-4 well is continuing and is expected to be completed in mid 2022.

Says drilling of the SV-31 well at the SV field is ongoing. Operations there are scheduled to be completed by the end of the first quarter in 2022 subject to successful testing. Says SV-2 well at the SV field and MEX-109 at the MEX field have experienced water ingress and were consequently taken off production. Explains that shut-ins of these wells have impacted current production rates and will potentially have an impact on the company's production volumes for the fourth quarter of 2021. Still notes that the currently high hydrocarbons sales prices will help to offset the anticipated overall lower production volumes and the resultant impact on revenues in the fourth quarter of 2021.

"It is unfortunate that both the SV-2 and MEX-109 wells have suffered water ingress around the same time, but we have moved quickly to commence workover operations on both wells and hope to remedy the issues encountered in the near future," Chief Executive Sergii Glazunov said.

Current stock price: 31.60 pence, down 17%

Year-to-date change: up 44%

By Abby Amoakuh; abbyamoakuh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Enwell Energy PLC 26.00 GBX 2.36 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.