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Highlights

  • Production at all active licences suspended during Q2 2025 due to sanctions-related regulatory action.

  • Legal proceedings continue in Ukrainian courts to challenge 10-year suspension orders on MEX-GOL, SV, and VAS licences.

  • Cash reserves remain stable at approx. AUD 151 million (USD 100.7 million), with a majority held in Ukrainian Hryvnia.

Enwell Energy plc (LSE:ENW) has announced that it recorded no production during the second quarter of 2025, following the suspension of its key production licences in Ukraine. The company confirmed that operations at the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV), and Vasyschevskoye (VAS) fields remain halted. These suspensions follow a regulatory directive from the Ukrainian authorities, citing sanctions-related ownership concerns.

Licence Suspensions and Legal Developments

The State Geologic and Subsoil Survey of Ukraine (SGSS) formally suspended the MEX-GOL, SV, and VAS licences on 15 November 2024. The suspension is based on Law No. 2805-IX, which empowers the Ukrainian government to take regulatory action if a licence holder’s ultimate beneficial owners are sanctioned.

The SGSS cited a presidential decree (Decree No. 698/2024) issued on 8 October 2024, which imposed sanctions on the trustees of Cypriot Trusts that indirectly hold significant stakes in Enwell Energy. These trustees — Proteas Trustee Services Limited, Proteas Trustees Limited, and their associated individuals — are registered in the State Register as ultimate beneficial owners of the Company’s Ukrainian subsidiaries. Based on this status, the SGSS imposed a 10-year suspension on the licences, effective from the date of the presidential decree.

Enwell initially secured interim rulings from the Poltava District Administrative Court in November 2024 to lift the suspensions temporarily. However, these rulings were overturned on appeal in January and February 2025. Following the court decisions, Enwell ceased operations at the affected fields.

The company is continuing legal proceedings to challenge the SGSS orders and is also exploring further interim measures in a bid to restore operations. Consultations with legal and regulatory advisers are ongoing as the company seeks pathways to mitigate the risk posed by the Ukrainian regulatory environment.

Operational Status and Future Planning

While production remains halted at MEX-GOL, SV, and VAS, Enwell is focusing its attention on the Svystunivsko-Chervonolutskyi (SC) exploration licence. Planning is underway for gas processing infrastructure in the SC area, including evaluation of potential connections to existing facilities. The company highlighted the ongoing challenging operating conditions in Ukraine, stating that the safety of personnel and contractors remains a top priority.

Financial Position

Despite the production halt, Enwell reported cash holdings of approximately USD 100.7 million (around AUD 151 million) as of 30 June 2025. Of this, USD 84.1 million is held in Ukrainian Hryvnia, with the remainder in a mix of US Dollars, Pounds Sterling, and Euros.