British Company Enwell Energy plc, a part of Smart Energy, announces its operational and financial unaudited results for H1, 2020. For six months the company has increased its average daily production rate of hydrocarbons by approximately 8%, while the revenues have decreased by 21.1%, reports the official announcement by Enwell Energy at the AIM Market of the London Stock Exchange.
Production rates by the Representative Office of Regal Petroleum Corporation Limited were higher when compared with the corresponding period in 2019, predominantly due to the contributions of well #119 at Mekhedivsko-Golotovshchynske field, which commenced production in October 2019, and well #54 at Svyrydivske field, which commenced production in May 2020. At the same time, Vasyshchivske field demonstrated lower production rate than last year due to a decline of production of well #10.
For the reported period the revenue made up $24.7 million (1H 2019: $31.3 million). The operating profit was down as well, $5.2 million (1H 2019: $13.7 million). The net profit for 1H of 2020 was $1.2 million, down against $9.9 million for 1H of 2019 as well. The negative dynamics of financial results is due to weakened price for gas (-46%) that was strengthened with seasonal factor of warm winter and, consequently, overloaded underground gas storages. The Ukrainian hryvnia devaluation (26.69 UAH/$ as of June 30, 2020) impacted the financial results as well.
As of the end of 1H of 2020 the company’s cash resources were approximately $54.2 million. As of September 13, this indicator reached $55.5 million (31 December 2019: $62.5 million).
For the reported period the capital investments made up $8.8 million (1H 2019: $6.7 million). Most part is related to the expenditure associated with the drilling of well #54 at Svyrydivske field. Cash fr om operations has funded the capital investment during the period. Taking into account the current financial results, the company plans to fund the development programmes for its assets in the remainder of 2020.
In particular, it plans to continue drilling operations on well #25 and planning for a further new well or sidetracking of an existing well at Svyrydivske field, investigating workover opportunities for existing wells; installation of further compression equipment; and continued investment in gas processing facilities, intra-field flowline network and other infrastructure. At the Vasyshchivske field Enwell Energy is planning a new well to explore the Vvdenska (VED) prospect within the VAS licence area, installation of compression equipment; and continued investment in gas processing facilities, flowlines and other infrastructure. The start of Svystunkivsko-Chervonolutske field development is in the pipeline.
As of the date of this report, Enwell Energy has been no operational disruption linked to the COVID-19 pandemic. Nevertheless, taking into account the further spreading of COVID-19, the Board and management continue to monitor the evolving situation and take actions to mitigate risks wh ere possible, with the safety of individuals and communities continuing to be the priority.