Ukrainian Court Backs Enwell in Licence Dispute
The appellate administrative court in Kyiv has ruled in favour of London-listed Enwell Energy in a dispute with state-owned Ukrnafta over a licence in central Ukraine, Enwell said on September 30.
The Svystunivsko-Chervonolutskyi exploration licence in the Poltava region was granted in May 2017 to Ukraine's Arkona Gas-Energy, which was bought by Enwell, formerly known as Regal Petroleum, in March 2020. But Ukrnafta, the licence's former holder, claimed there were irregular procedures in the licence's issue to Arkona.
The first instance court in Ukraine ruled in favour of Ukrnafta in July 2020, invaliding the award to Arkona. But Arkona filed an appeal at the appellate court in Kyiv, and that court has ruled in its favour, overturning the previous verdict, Enwell said. Ukrnafta has not said what further actions it will take in the dispute.
Svystunivsko-Chervonolutskyi spans 97 km2 of the Poltava region in Ukraine's eastern Dnieper-Donets basin. Five exploration wells were drilled there before Enwell obtained rights, and it is estimated to hold 38mn barrels of oil equivalent, including 4.9bn m3 of gas.