Enwell Energy PLC on Tuesday said production operations continue, but most other works have been suspended at the Mekhediviska-Golotvshinska and Svyrydivske fields, as Russian missile strikes worsen an already challenging situation in Ukraine.
The London-based oil and gas exploration and production company operates three gas and condensate fields in the country: MEX-GOL, SV, and VAS.
Production operations at the VAS field were suspended from February to October, and have only recently resumed. While operations at MEX-GOL and SV continued throughout, Enwell said there had been considerable disruption to remedial and maintenance work at both sites, resulting in materially lower production volumes compared to last year.
In the third quarter ended September 30, Enwell reported daily gas production for MEX-GOL and SV of 10.9 million cubic feet per day, down 48% from 21.0 million a year prior. It reported a similar drop in daily condensate production to 453 barrels per day, down 39% from 749 barrels.
Some field operations have also resumed, including workover operations on the SV-2 well and maintenance of field infrastructure. The SV-31 development well was completed in May, and brought on production from one interval at a drilled depth of 5,210 to 5,219 metres.
In addition to bemoaning persistent operational delays, Enwell also acknowledged the sustained turbulent effect of the war on domestic gas pricing.
‘Although the situation in Ukraine continues to be extremely challenging, we are pleased that, with the recent resumption of production operations at the VAS field, we now have active operational activity at all of our assets, and we also look forward to the results of the recently completed SC-4 well in due course,’ said chief executive officer Sergii Glazunov.
Enwell didn’t on Tuesday specifically address the impact on production of recent Russian missile strikes, including Monday’s barrage, which left at least 11 dead. The VAS field is located 17 kilometres south-east of Kharkiv, which was struck by four missiles on Saturday morning.
At 30 September, Enwell’s cash resources were approximately $78.6 million.
Enwell shares were trading 10% lower at 24.40 pence each in London on Tuesday afternoon.
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