LLC Arkona Gas-Energy, which is Ukrainian asset of public British company Enwell Energy and part of Smart Energy Group, for the third time confirmed its legal rights to develop Svystunkivsko-Chervonolutske field.
Thus, on May 1, 2023, the Supreme Court of Ukraine made decision to allow Arkona’s appeal and overturn the ruling made by the Sixth Court of Appeal, which on November 2, 2022 once again (after cassation) re-examined appeal of LLC Arkona Gas-Energy, rejected it and upheld decision of the first instance court dated January 18, 2022 on the claim of LLC Boryslav Oil Company.
Since the Supreme Court represents the final appellate court in these legal proceedings, and accordingly, the decision of the Supreme Court is final. Therefore, special permit for production of hydrocarbons at Svystunkivsko-Chervonolutske field is valid. Currently, Arkona Gas-Energy company has carried out a significant set of geological prospecting works at Svystunkivsko-Chervonolutske field, including 3D seismic acquisition of the entire licensed area. Also, the first well No.4 has already been drilled. It is primarily of an exploratory kind, aimed to study deposits of V-22 horizon of Visean stage at this field. The drilling began in August 2021 and, after some interruption due to full-scale russian aggression in Ukraine, it was completed at 5 585 m depth. Three prospective intervals were drilled and tested. As a result, stable inflow of hydrocarbons was obtained.Arkona Gas-Energy planned to perform pipeline laying works, construction of a new gas preparation plant and other processing infrastructure, as well as drilling of new wells in the future.
Smart Energy is a part of investment group Smart Holding and is in charge of implementing exploration projects, commercial development of the hydrocarbon deposits. It is ranked in top 5 biggest private gas producers of Ukraine, producing over 1 mln m3 of gas per day in total at the beginning of Russia's invasion of Ukraine.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Enwell Energy, a listed British company having assets in Poltava (the Representative Office of Regal Petroleum Corporation Limited and Arkona Gas-Energy LLC) and Kharkiv regions (Prom-Energo Produkt).
Svystunkivsko-Chervonolutske field has been developed since 1994. 5 wells were drilled within the license area between 1989 and 1999, but none of them are currently operational. Smart Energy Group has been successfully working at the nearby Svyrydivske field for a while and has sufficient experience and professional team to continue developing Svystunkivsko-Chervonolutske field.