Enwell Energy PLC on Monday said three of its production licences in Ukraine have been suspended as a result of government sanctions, ceasing all operations.
Shares in the Ukraine-focused oil and gas exploration and production company were down 37% at 16.40 each in London on Monday afternoon.
Enwell Energy said its Mekhediviska-Golotvshinska, Svyrydivske and Vasyschevskoye licenses were suspended on Friday by the State Geologic & Subsoil Survey of Ukraine.
This was done under Ukrainian law number 2805-IX, which enables hydrocarbon licenses to be suspended or revoked if ‘the ultimate beneficial owner’ is the subject of sanctions by the Ukrainian government.
Enwell Energy subsidiary Regal Petroleum Corp Ltd holds the first two licences, while subsidiary Prom-Energo Produkt LLC holds the third.
In early October, a Decree of the President of Ukraine numbered 698/2024 was made following a resolution passed by the National Security & Defence Council of Ukraine titled ‘On application of personal special economic and other restrictive measures or sanctions’.
As a result of this decree, sanctions were applied to Proteas Trustee Services Ltd, Proteas Trustees Ltd and Eleana Iona and Afrodite Loukaidou, who are trustees of Cypriot trusts holding major stakes in Enwell Energy.
Both subsidiaries holding the production licences were required to register their ultimate beneficial owners in the Unified State Register of Legal Entities, Individuals-entrepreneurs & Civil Institutions of Ukraine. The firms registered trustees Eleana Iona and Afrodite Loukaidou as beneficial owners, resulting in the suspension of the associated licences.
All operations at each of the three production licences have been halted for a period of up to 10 years, which was effective on October 8.
Enwell Energy said: ‘The company is consulting with its external legal and other advisers in relation to the suspension orders in order to protect its assets, and further information will be announced in due course.’
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