Enwell Energy plc, the AIM-quoted (ENW) oil and gas exploration and production group, announces its audited results for the year ended 31 December 2020.
Aggregate average daily production of 4,541 boepd (2019: 4,263 boepd), an increase of approximately 6.5%
SV-54 development well successfully completed and brought on production in May 2020
Drilling of SV-25 appraisal well successfully completed and hooked-up for production in Q1 2021
MEX-GOL and SV production licences each extended to 2040 enabling full economic development of remaining reserves
No operational disruption to the Group's operations linked to the COVID-19 pandemic
Revenue of $47.3 million (2019: $55.9 million), down 15% as a function of weakened gas prices in the year
Gross profit of $15.7 million (2019: $23.5 million), down 33%
Cash generated from operations of $23.8 million (2019: $24.7 million), remained steady, predominantly due to record production increasing non-cash DD&A
Net profit of $3.2 million (2019: $12.2 million)
Cash and cash equivalents were steady at $61.0 million at 31 December 2020 (2019: $62.5 million)
Average realised gas, condensate and LPG prices in Ukraine were lower, particularly gas prices, at $136/Mm3 (UAH3,618/Mm3), $46/bbl and $46/bbl respectively (2019: $219/Mm3 (UAH5,729/Mm3) gas, $58/bbl condensate and $55/bbl LPG)
Development work planned for 2021 at the MEX-GOL and SV fields includes: completing drilling operations of the SV-29 well; planning for a further new well or sidetracking of an existing well in the SV field; and upgrading of the gas processing facilities
Development work planned for 2021 at the VAS field includes: planning for a new well to explore the VED prospect within the VAS licence area; and upgrading of the gas processing facilities
Development work planned for 2021 at the SC field includes: planning for the drilling of the SVIST-4 well; and acquisition of 150 km2 of 3D seismic
2021 development programme expected to be funded from existing cash resources and operational cash flow
Sergii Glazunov, CEO, commented: "2020 was another strong operational year for Enwell Energy. Two further successful wells in the SV field led to record production levels from our fields, which helped offset the impact of lower gas prices experienced in the year. The recent resolution of the legal issues relating to LLC Arkona Gas-Energy has enabled us to commence development planning for the SC licence, with our first well planned within the next twelve months.
We are looking forward to the results of the SV-29 development well and to further progressing our development programme in the new financial year, whilst continuing to improve production rates and revenue streams in the future. Although we have not suffered any material impact from the COVID-19 pandemic, we have taken, and will continue to take, all possible actions to ensure the safety of our employees and local communities."
The Annual Report and Financial Statements for 2020, together with the Notice of Annual General Meeting, will be posted to shareholders and published on the Company's website during May/June 2021.