Relentless | At | the | |||||||||||||||||||||||||||
Focus | VAS | ||||||||||||||||||||||||||||
field, | |||||||||||||||||||||||||||||
proposed | planning | ||||||||||||||||||||||||||||
VED | new | ||||||||||||||||||||||||||||
area | prospect | well to | fo | ||||||||||||||||||||||||||
has | within | explor | |||||||||||||||||||||||||||
the | gas | continued, | the | VAS | |||||||||||||||||||||||||
network | processing | and | upgrad | ||||||||||||||||||||||||||
underway | and | other | |||||||||||||||||||||||||||
facilities, | |||||||||||||||||||||||||||||
Overall | flo | ||||||||||||||||||||||||||||
. | infrastructure | ||||||||||||||||||||||||||||
upward | production | continued | |||||||||||||||||||||||||||
record | trend | its | |||||||||||||||||||||||||||
levels | during the | ||||||||||||||||||||||||||||
approximately for the | year, | achiev | |||||||||||||||||||||||||||
2019, | 6 | ||||||||||||||||||||||||||||
with | . | and | |||||||||||||||||||||||||||
2020, | a | 5% | higher | being | |||||||||||||||||||||||||
when | than | ||||||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||
production | boost | in | |||||||||||||||||||||||||||
. | the SV | 54 | in | ||||||||||||||||||||||||||
Production | well | May | |||||||||||||||||||||||||||
came on | |||||||||||||||||||||||||||||
The | |||||||||||||||||||||||||||||
average | daily | ||||||||||||||||||||||||||||
condensate | production | ||||||||||||||||||||||||||||
GOL | and | of | |||||||||||||||||||||||||||
gas, |
Enwell Energy plc Annual Report and Financial Statements for the year ended 31 December 2020
Contents
Strategic report
Highlights | 02 |
Where We Operate | 04 |
Our Marketplace - Ukraine | 05 |
Chairman's Statement | 06 |
Chief Executive's Statement | 08 |
Focus for Growth | 11 |
Business Model | 12 |
Our Strategic Priorities | 13 |
Statement Under S172(1) | |
Companies Act 2006 | 14 |
Overview of Assets | 16 |
Overview of Reserves | 19 |
Finance Review | 20 |
COVID-19 Pandemic | 22 |
Corporate Social Responsibility Overview | 23 |
Principal Risks and Uncertainties | 24 |
Governance
Board of Directors | 32 |
Corporate Governance Statement | 34 |
Directors' Report | 37 |
Independent Auditors' Report | 39 |
Financials
Consolidated Income Statement | 45 |
Consolidated Statement of | |
Comprehensive Income | 46 |
Company Statement of | |
Comprehensive Income | 46 |
Consolidated Balance Sheet | 47 |
Consolidated Statement of | |
Changes in Equity | 48 |
Consolidated Cash Flow Statement | 49 |
Company Balance Sheet | 50 |
Company Statement of | |
Changes in Equity | 51 |
Company Cash Flow Statement | 52 |
Notes forming part of the financial | |
statements | 53 |
Advisers | 83 |
Glossary | 84 |
We are an oil and gas business focused on careful, disciplined growth in our operations in Ukraine. Our success is founded on rigorous planning, careful use of cutting-edge technology, responsible resource stewardship, and a highly experienced team. Meet an energy business that's listening to its stakeholders.
Rigorous control of our production processes and costs
Operating |
expenditure |
per boe |
$9.50 |
STRATEGIC REPORT
Capital structure to implement our near-term strategy
Cash year-end |
$61 |
million |
Reserves growth increase since 2013 by a factor of four
2P reserves |
49 |
MMboe |
01
Highlights
Production | Revenue | Cash generated from |
operations |
Up 6.5% | Down 15% | Down 4% | ||
4,541boepd | $47.3m | $23.8m | ||
(2019: 4,263 boepd) | (2019: $55.9 million) | (2019: $24.7 million) | ||
Operational
- Aggregate average daily production of 4,541 boepd (2019: 4,263 boepd), an increase of approximately 6.5%
- SV-54development 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-GOLand 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
Financial
- 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)
02 | Enwell Energy plc // Annual Report and Financial Statements 2020 |
Outlook
- 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
Why we have a strong future:
- We see a growth market ahead in Ukraine as domestic demand expands
- We have a significant reserves base
- We aim for a production to reserves ratio of 7% (currently at 3%)
- We apply our skills and technology to enable us to produce at low cost
- We place great emphasis on safety and environmental awareness, and we design our processes to achieve accident-free operations
- We have no debt and sufficient funding resources and contingency plans to deliver our near-term plans
- We apply rigorous selection criteria when investigating new business opportunities
STRATEGIC REPORT
03
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Enwell Energy plc published this content on 21 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2021 07:14:06 UTC.