Enwell Energy makes good production progress in first quarter

Enwell Energy said on Friday that overall production volumes in the first quarter were up around 1.5% compared with the first quarter of 2020, to 4,576 barrels of oil equivalent per day.

The AIM-traded firm said that was the result of new production volumes from the SV-54 and SV-25 wells in the Svyrydivske (SV) field, which began production in May 2020 and February 2021, respectively, offset by natural field decline.

On the operational front, at the Mekhediviska-Golotvshinska (MEX-GOL) and SV fields, the SV-25 appraisal well was completed to a final depth of 5,320 metres.

One interval, at a drilled depth of 5,184 to 5,190 metres within the B-22 Visean formation, was perforated, and after successful testing it was hooked-up to the gas processing facilities.

The well was currently producing at around 1.9 million standard cubic feet of gas and 70 barrels of condensate per day, making for 413 barrels of oil equivalent per day in total.

In February, the SV-29 well was spudded, with a target depth of 5,450 metres.

Drilling operations were scheduled to be completed by the end of the third quarter, and subject to successful testing, production hook-up was scheduled for the fourth quarter.

The well is primarily a development well, the company said, targeting production from the B-22 horizon, as well as appraising the B-21 and B-23 horizons in the Visean formation.

In addition, it said preparations for upgrade works to the gas processing plant at the MEX-GOL and SV fields were continuing, with the design phase now complete and the procurement of long-lead items underway.

Those works involved an upgrade of the liquefied petroleum gas (LPG) extraction circuit, an increase to the flow capacity of the plant, and a “significant” increase to the liquids tank storage capacity.

The works were scheduled to start in mid-2021, and were designed to improve overall plant efficiencies and boost recoveries of condensate and LPG.

At the Vasyschevskoye (VAS) field, a workover of the VAS-10 well was undertaken to access an alternative production horizon, and planning was continuing for a new well to explore the Videnska (VED) prospect within the licence area.

Meanwhile, at the Svystunivsko-Chervonolutskyi (SC) exploration licence, development planning had started, which included the acquisition of 150 square kilometres of 3D seismic and drilling of a new well, SVYST-4, both of which were planned to start later in the year.

At 31 March, the company's cash resources totalled around $60.9m (£44.44m), comprising $23.2m equivalent in Ukrainian hryvnia, and the balance of $37.7m equivalent in a combination of dollars, pounds sterling and euros.

“We are pleased to report another strong operational quarter, with robust production volumes, and the successful completion of the SV-25 well, which was drilled safely and ahead of schedule,” said chief executive officer Sergii Glazunov.

“We are also looking forward to the safe and efficient drilling of the SV-29 well, which we hope will continue our success in the development of our fields.

“Furthermore, the recent resolution of the legal issues relating to the SC licence has enabled us to commence planning for the development of this licence.”

At 0857 BST, shares in Enwell Energy were up 0.48% at 21p.