Enwell Energy increased its average daily production rate and revenues in H1, 2021

British Company Enwell Energy plc, a part of Smart Energy, announces its operational and financial unaudited results for H1, 2021. For six months the company has increased its aggregate average daily production by 8.2%, while the revenues have grown by 66.4%, reports the official announcement by Enwell Energy at the AIM Market of the London Stock Exchange.

Thus, the average daily production of gas, condensate and LPG for the reported period was as follows:

Production rates by Enwell Energy were higher in H1, 2021, y-o-y, due to the contributions of well #54, commenced production in May 2020, and well #25, commenced production in February 2021, at Svyrydivske field.

In Q2, 2021, average daily production hit a record quarterly level of 5,254 boepd.

The combination of higher production levels and the strong recovery in gas prices resulted in much improved financial results. For the reported period the revenue made up $41.1 million (H1, 2020: $24.7 million). The operating profit was up as well, $18.1 million (H1, 2020: $5.2 million). The net profit for H1 of 2021 was $13.8 million, having increased significantly against $1.2 million for H1 of 2020 as well.

This improved level of cash generation has enabled the company to progress its multiple work programmes across its broadened asset portfolio, with approximately $26 million invested during the 2021 year to date, with $15 million invested in H1, 2021 (H1, 2020: $6.7 million). Cash from operations has funded the capital investment during the period. Taking into account the current financial position and positive operating cash flow, Enwell Energy plans to fund the development programmes for its assets over the remainder of 2021 and beyond.

Cash and cash equivalents held at 30 June 2021 were $62.9 million (31 December 2020: $61.0 million cash and cash equivalents). The company’s cash and cash equivalents balance on September 14, 2021, was $54.4 million, held as to $16.3 million equivalent in Ukrainian Hryvnia, and the balance of $38.1 million equivalent predominantly in US Dollars, Euros and Pounds Sterling.

In H2, 2021, Enwell Energy continues to develop its gas and condensate fields. In particular, it is completing testing of development well #29 and, subject thereto, hooking-up the well to the gas processing facilities at Svyrydivske field, commencing the drilling of development well #31 there, investigating workover opportunities for other existing wells, and remedial and upgrade work on existing wells, the flow-line network and pipelines and other infrastructure. At Vasyshchivske field Enwell Energy continues planning a new well to explore the Vvdenska prospect within the Vasyshchivske licence area and maintenance of the gas processing facilities, pipeline network and other field infrastructure is planned.

In August, 2021, the company spudded appraisal well #4 at Svystunkivsko-Chervonolutske field, while the acquisition of 3D seismic is planned for later this year.

As of the date of this report, Enwell Energy has been no operational disruption linked to the COVID-19 pandemic. Nevertheless, the Board and management continue to monitor the evolving situation and take actions to mitigate risks where possible, with the safety of individuals and communities continuing to be the priority as well as to minimise any potential disruption to the business.

Reference

Enwell Energy plc (ex-Regal Petroleum plc) is a British AIM-quoted public company, holding 100% working interests in the companies that operate in Ukraine: Regal Petroleum Corporation Limited (the Representative Office is registered in Ukraine) and Arkona Gas-Energy LLC that are operating in Poltava region as well as Prom-Energo Produkt LLC, working in Kharkiv region. The companies own special license for production of hydrocarbons and are part Smart Energy Group.

Whereas, Smart Energy Group is a part of Smart-Holding, in charge of implementing exploration projects and commercial development of the hydrocarbon deposits.

In addition to assets of Regal Petroleum, Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region).