30 September 2025

 

 

 

ENWELL ENERGY PLC

 

2025 INTERIM RESULTS

 

Enwell Energy plc ("Enwell Energy" or the "Company", and together with its subsidiaries, the "Group"), the AIM-quoted (AIM: ENW) oil and gas exploration and production group, is pleased to announce its unaudited results for the six month period ended 30 June 2025.

 

Highlights

 

Operational

·	Aggregate average daily production of 1,865 boepd (1H 2024: 2,077 boepd) (in each case calculated on the days when the Group's fields were actually in production)
·	Aggregate production volumes for the period of 48,962 boe (1H 2024: 377,968 boe)

Financial

·	Revenue of $3.4 million (1H 2024: $23.7 million), down 86% primarily as a result of the suspension of production early in the period
·	Gross profit of $1.4 million (1H 2024: $15.5 million), down 91%
·	Operating profit of $1.0 million (1H 2024: $16.9 million), down 94% predominantly as a result of the suspension of production early in the period
·	Net loss of $1.4 million (1H 2024: $12.6 million profit)
·	Cash and cash equivalents of $100.7 million as at 30 June 2025 (30 June 2024: $93.7 million), and of $100.2 million as at 22 September 2025
·	Average realised gas and condensate prices in Ukraine were $377/Mm3 (UAH15,836/Mm3) and $63/bbl respectively, with no LPG produced in the period (1H 2024: $306/Mm3 (UAH11,919/Mm3) gas, $74/bbl condensate and $149/boe LPG)

Outlook

·	The Russian invasion of Ukraine in February 2022 has had and continues to have a significant impact on all aspects of life in Ukraine, including the Group's business and operations. The scale and duration of disruption to the Group's business continues to be difficult to predict, and there remains significant uncertainty about the outcome of the war in Ukraine
·	In November 2024, the Ukrainian authorities issued orders to suspend the MEX-GOL, SV and VAS production licences for a period of ten years, and consequently all work at these licences is currently suspended. This followed similar regulatory action against the Group in April and May 2023, when the VAS production licence and SC exploration licence were suspended from May 2023 until June 2024
·	Further work on the MEX-GOL, SV and VAS licences will remain suspended until there is a resolution of the regulatory issues, including the lifting of the suspension orders
·	The Group is continuing to pursue legal proceedings to challenge the suspension orders, including investigating the possibility of seeking further interim measures to allow restoration of its operations at the MEX-GOL, SV and VAS fields
·	The Group has also commenced arbitration proceedings under the bilateral investment treaty between the United Kingdom and Ukraine
·	At the SC exploration licence area, planning for the development of the licence area is continuing
·	Currently, the Group retains a significant proportion of its cash outside Ukraine, which enhances the Group's ability to navigate the current risk environment for the foreseeable future, and provides a material buffer to any further disruptions to the Group's operations
·	The Group's limited development programme for the remainder of 2025 and 2026 is expected to be funded from its existing cash resources and operational cash flow

 

Oleksiy Zayets, CEO, commented: "The regulatory action taken by the Ukrainian authorities in November 2024 resulting in the ongoing suspensions of our MEX-GOL, SV and VAS production licences is very disappointing at a time when Ukraine is in need of hydrocarbon production to support its energy needs. We are endeavouring to find a resolution of these issues with the Ukrainian Government and hope that progress can be made towards such a resolution. These endeavours include, in August 2025, the Group commencing arbitration proceedings against Ukraine under the Agreement Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ukraine for the Promotion and Reciprocal Protection of Investments."

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

 

For further information, please contact:

 

Enwell Energy plc	Tel: 020 3427 3550
Chuck Valceschini, Chairman
Oleksiy Zayets, Chief Executive Officer
Bruce Burrows, Finance Director
Strand Hanson Limited	Tel: 020 7409 3494
Rory Murphy / Matthew Chandler
Zeus Capital Limited	Tel: 020 7614 5900
Oscar Stack (Corporate Finance)
Simon Johnson (Corporate Broking)
Citigate Dewe Rogerson	Tel: 020 7638 9571
Luna Habte

 

 

Dr Gehrig Schultz, BSc Geophysical Engineering, PhD Geophysics, Member of the European Association of Geophysical Engineers, Member of the Executive Coordinating Committee of the Continental European Energy Council, and a Non-Executive Director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM Rules for Companies.

 

Definitions/Glossary
bbl	barrel
bbl/d	barrels per day
boe	barrels of oil equivalent
boepd	barrels of oil equivalent per day
Company	Enwell Energy plc
€	Euro
GDP	gross domestic product
Group	Enwell Energy plc and its subsidiaries
km	kilometre
km2	square kilometre
LPG	liquefied petroleum gas
MEX-GOL	Mekhediviska-Golotvshinska
m3	cubic metres
Mm³	thousand cubic metres
MMboe	million barrels of oil equivalent
MMscf	million scf
MMscf/d	million scf per day
%	per cent.
QHSE	quality, health, safety and environment
SC	Svystunivsko-Chervonolutskyi
scf	standard cubic feet measured at 20 degrees Celsius and one atmosphere
SV	Svyrydivske
$	United States Dollar
UAH	Ukrainian Hryvnia
VAS	Vasyschevskoye
VED	Vvdenska

 

 

 

 

 

Chairman's Statement

 

I present the Group's results for the first half of 2025, which reflect the very challenging situation in respect of the Group's business in Ukraine. The ongoing war in Ukraine presents a very difficult operating environment and worrying outlook, and I am greatly saddened by the terrible events occurring there.

 

The war has had a significant impact on all aspects of life in Ukraine, including the Group's business and operations. The overall scale and duration of future disruption to the Group's business continues to be difficult to predict, and there remains significant uncertainty about the outcome of the war.

 

In November 2024, the MEX-GOL, SV and VAS production licences were suspended by the Ukrainian authorities. The Group commenced legal proceedings in Ukraine to challenge these suspensions, which resulted in interim rulings to temporarily lift the suspensions, but unfortunately, the interim rulings in respect of the MEX-GOL and SV licences were overturned in January 2025 and in respect of the VAS licence in February 2025. Consequently, all operational activity is currently suspended at these licences.

 

In August 2025, the Group commenced arbitration proceedings against Ukraine under the Agreement Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ukraine for the Promotion and Reciprocal Protection of Investments (the "Treaty"). The Treaty is an international treaty designed to protect the rights of investors from the United Kingdom or Ukraine who make investments in the other country. Within the arbitration proceedings, the Company is claiming monetary damages for the loss and damage it has suffered as a result of Ukraine's actions, as well as the reinstatement of the MEX-GOL, SV and VAS production licences for the remainder of their respective durations, and its costs.

 

Notwithstanding the war and the Ukrainian authorities regulatory actions, during the first half of 2025, the Group continued with development of the SC exploration licence area, which includes planning for the installation of gas processing facilities and other surface infrastructure.

 

Aggregate average daily production (calculated on the days when the fields were actually in production) during the first half of 2025 was 1,865 boepd, which is lower than the aggregate daily production rate of 2,077 boepd achieved on the days of actual production during the corresponding period in 2024 primarily due to the various suspensions of operations at the MEX-GOL, SV and VAS fields, as well as the disruption caused by the war and natural field decline. The aggregate production volumes for the period were 48,962 boe, which is lower than the aggregate production volumes of 377,968 boe for the corresponding period in 2024 for the same reasons.   

 

The suspension of the MEX-GOL, SV and VAS fields meant that production volumes were significantly lower during the period, with the result that revenues were much lower at $3.4 million (1H 2024: $23.7 million). The Group made a net loss of $1.4 million (1H 2024: $12.6 million profit), and operating profit was also much lower at $1.0 million (1H 2024: $16.9 million). Despite this, the Group still generated a net cash inflow from operating activities of $1.2 million (1H 2024: $21.8 million) enabled by the $4.5 million interest received. 

 

Development activity was significantly impacted by the high level of risk faced by the Group in Ukraine.

 

There is significant disruption to the fiscal and economic environment in Ukraine due to the ongoing war. Whilst during the first half of 2025, the Ukrainian economy grew, it is likely that fiscal and economic uncertainties will continue until hostilities cease.

 

In recent years, the Ukrainian Government implemented a number of reforms in the oil and gas sector, which include the deregulation of the gas supply market and simplification of the regulatory procedures applicable to oil and gas exploration and production activities in Ukraine. The deregulation of the gas supply market, supported by electronic gas trading platforms, has improved pricing transparency in Ukraine.

 

During 2025 to date, Ukrainian gas prices strengthened as the Ukrainian gas market adapted to the prevailing demand and supply conditions. However, condensate prices were lower by comparison to the corresponding period in 2024, and there was no LPG production due to a delay in the issue of an LPG production licence.

 

Restructuring of Smart Holding Group

 

In January 2023, the Company was notified that there had been a restructuring of the ownership of the PJSC Smart-Holding Group, a member of which held a major shareholding in the Company, and which was ultimately controlled by Mr Vadym Novynskyi ("Mr Novynskyi"). Under this restructuring, which occurred with effect from 1 December 2022, Mr Novynskyi disposed of his major indirect shareholding interest in the Company to two trusts registered in Cyprus named the SMART Trust and the STEP Trust (the "Trusts"). Further information is contained in the Company's announcement dated 17 January 2023, and the TR-1 Forms published on 26 January 2023, 31 July 2023 and 20 March 2024.

 

Regulatory Actions by Ukrainian Authorities and Suspensions of Licences

 

In early December 2022, the Ukrainian Government imposed sanctions on Mr Novynskyi, as set out in the Company's announcement dated 9 December 2022.

 

As announced on 4 January 2023, new legislation, Law No. 2805-IX, relating to the natural resources sector was enacted in Ukraine, which came into force on 28 March 2023. This legislation was a substantial package of new procedures and reforms designed to improve the regulatory process relating to the exploration and development of natural resources in Ukraine. However, the legislation includes provisions that if the ultimate beneficial owner of a mineral or hydrocarbon licence becomes the subject of sanctions in Ukraine, then the State Geologic and Subsoil Survey of Ukraine (the "SGSS") may suspend or revoke that licence.

 

Following Law No. 2805-IX coming into force on 28 March 2023, the Ukrainian authorities have taken a number of regulatory actions against a number of the Group's subsidiary companies in Ukraine.

 

As announced on 12 April 2023, such regulatory actions included conducting a search at the Group's Yakhnyky office, from where the MEX-GOL and SV fields are operated, and placing certain physical assets of the Ukrainian branch (representative) office of Regal Petroleum Corporation Limited ("RPC") and LLC Arkona Gas-Energy ("Arkona") (which respectively hold the MEX-GOL and SV fields and the SC exploration licence) under seizure, thereby restricting any actions that would change registration of the property rights relating to such assets, although the use of such assets was not restricted and therefore the Company was able to continue to operate the fields. In addition, the Ministry of Justice of Ukraine (the "MoJ") made an order cancelling the registration entry made on behalf of a subsidiary of the Company named LLC Regal Petroleum Corporation (Ukraine) Limited in the Unified State Register of Legal Entities, Individuals-entrepreneurs and Civil Institutions of Ukraine (the "State Register") relating to the ultimate beneficial owners of such company, which were stated as being the trustees (the "Trustees") of the Trusts as previously notified to the Company, thereby restoring the previous entry in the State Register, Mr Novynskyi.

 

On 2 May 2023, the MoJ made further orders cancelling the registration entry made on behalf of three further Ukrainian subsidiaries of the Company named LLC Prom-Enerho Produkt ("PEP"), Arkona and LLC Well Investum ("Well Investum") respectively in the State Register relating to the ultimate beneficial owners of such companies, which again were stated as being the Trustees of the Trusts, thereby restoring the previous entry, Mr Novynskyi. PEP holds the VAS production licence, Arkona holds the SC exploration licence and Well Investum is a dormant company.

 

Following the issuance of the abovementioned orders by the MoJ, Mr Novynskyi was registered in the State Register as the ultimate beneficial owner of each of PEP and Arkona, and was consequently recognised by the SGSS as the ultimate beneficial owner of each of the VAS production licence and SC exploration licence. As a result, on 4 May 2023, the SGSS issued orders suspending the VAS production licence and SC exploration licence for a period of five years effective from that date.

 

However, on 26 June 2024, the SGSS issued orders to renew the validity of each of the VAS production licence and SC exploration licence, thereby cancelling the suspensions of those licences, and enabling the resumption of operational activities at those licences. Further information is contained in the Company's announcement dated 27 June 2024.

 

In September 2024, new legislation came into force which requires that branches (or representative offices) of foreign companies operating in Ukraine register their ultimate beneficial owners in the State Register. RPC, which holds the MEX-GOL and SV licences, operates such a branch and therefore registered the Trustees of the Trusts as its ultimate beneficial owners in the State Register, based on the notifications made by the Trustees to the Company and published to the market on 26 January 2023, 31 July 2023 and 20 March 2024.

 

On 8 October 2024, the Ukrainian Government imposed sanctions on the Trustees, as set out in the Company's announcement dated 11 October 2024.

 

On 15 November 2024, the SGSS issued orders to suspend the MEX-GOL, SV and VAS production licences for a period of ten years effective from 8 October 2024 pursuant to Law No. 2805-IX, based on the sanctions imposed on the Trustees of the Trusts. Further information is contained in the Company's announcement dated 18 November 2024.

 

Following receipt of the suspension orders, the Company issued legal proceedings in the Poltava District Administrative Court in Ukraine to challenge such orders, and within such proceedings, the Company obtained interim rulings (the "Interim Rulings") to lift the suspensions of the MEX-GOL, SV and VAS production licences pending determination of the substantive issues in the legal proceedings, as set out in the Company's announcement dated 26 November 2024.

 

The SGSS appealed against the Interim Rulings in the Second Appeal Administrative Court in Ukraine. By a decision dated 22 January 2025, the appeal against the Interim Ruling relating to the MEX-GOL and SV licences was allowed, and by a decision dated 27 February 2025, the appeal against the Interim Ruling relating to the VAS licence was also allowed. As a result, the respective suspension orders in respect of the MEX-GOL, SV and VAS licences were reinstated, and the Company ceased all field operations on those licences immediately following the respective appeal decisions.

 

The Group is continuing its legal proceedings in Ukraine to challenge the suspension orders, including investigating the possibility of pursuing further interim measures to allow restoration of its operations, and continuing to consult with its external legal and other advisers to seek to mitigate the risks associated with the regulatory actions of the Ukrainian authorities.

 

In addition, as announced on 27 August 2025, the Group has commenced arbitration proceedings against Ukraine under the Treaty between the United Kingdom and Ukraine. The arbitration proceedings have been commenced in accordance with the Convention on Settlement of Investment Disputes between States and Nationals of Other States (the "ICSID Convention"), and the arbitration has been registered by the International Centre for Settlement of Investment Disputes ( "ICSID"). Within the arbitration proceedings, the Company is claiming monetary damages for the loss and damage it has suffered as a result of Ukraine's actions, as well as the reinstatement of the MEX-GOL, SV and VAS production licences for the remainder of their respective durations, and its costs.

 

Board Change

 

In January 2025, Igor Basai stepped down as a Non-Executive Director and Oleksandr Blyzniuk was appointed as a Non-Executive Director.

 

Outlook

 

The ongoing war in Ukraine creates a devastating humanitarian situation in Ukraine, as well as extreme challenges to the social, fiscal, economic and business environment. This has been exacerbated in respect of the Group by the regulatory actions of the Ukrainian authorities, culminating in the suspension of the MEX-GOL, SV and VAS production licences.

 

Under these circumstances, it is extremely difficult to plan future investment and operational activities at the Group's fields. However, subject to resolution of the current regulatory issues with the Ukrainian authorities, and it being safe to do so, the Group is planning to undertake further limited development activities during the remainder of 2025 and beyond in order to continue the development of its fields. In doing so, the Group is taking and will take all measures available to protect and safeguard its personnel and business, with the safety and wellbeing of its personnel and contractors being paramount. The Group retains a significant proportion of its cash reserves outside Ukraine, and this provides a material buffer to any further disruptions to the Group's operations. This has enabled the Board to reach the opinion that the Group has sufficient resources to navigate the current risk environment for the foreseeable future.

 

In conclusion, on behalf of the Board, I would like to thank all of our staff for their continued dedication and efforts during 2025 to date, especially their remarkable courage and fortitude during the ongoing war in Ukraine.

 

 

Chuck Valceschini

Chairman

 

 

Chief Executive's Statement

 

Introduction

 

The war in Ukraine, as well as adverse regulatory actions by the Ukrainian authorities, have materially disrupted the Group's development activity at its Ukrainian fields during the first half of 2025. During the period, such regulatory actions resulted in the continued suspensions of the MEX-GOL, SV and VAS licences, and currently there are no production operations at these fields.

 

At the SC exploration licence, development activities continued and this included planning for the installation of new gas processing facilities and other surface infrastructure as well as assessing the feasibility of an alternative option to connect to existing gas processing facilities.

 

Overall production in the first half of 2025 was lower than in the corresponding period in 2024 due to the disruption to production operations caused by the war in Ukraine, natural field decline and the suspensions of the MEX-GOL, SV and VAS production licences.

 

Production

 

The average daily production of gas, condensate, oil and LPG for the 23 days that the MEX-GOL and SV fields were producing (182 days in 1H 2024) and the 58 days that the VAS field was producing (nil days in 1H 2024), during the six month period ended 30 June 2025, is shown below.

 

Field	Gas (MMscf/d)		Condensate* (bbl/d)		LPG** (boe/d)		Aggregate boepd
	1H 2025	1H 2024	1H 2025	1H 2024	1H 2025	1H 2024	1H 2025	1H 2024
MEX-GOL & SV	7.1	8.6	449	323	-	325	1,692	2,077
VAS	0.9	-	6	-	-	-	173	-
Total	8.0	8.6	455	323	-	325	1,865	2,077

 

* Condensate includes light oil from well MEX-102 which commenced production in late October 2024

 ** There was no LPG production in 1H 2025 due to a delay in renewal of the LPG production licence

 

As a result of the continued operational disruptions caused by the war, regulatory actions and deferment of development work, the Group's average daily production rate for the first half of 2025 declined. During the period, regulatory actions taken by the Ukrainian authorities resulted in the suspensions of the MEX-GOL and SV licences from 22 January 2025 and the VAS licence from 27 February 2025, with, in each case, such suspensions currently continuing. Accordingly, there is currently no production from these fields.

 

Aggregate production volumes for 1H 2025 were 48,962 boe, which is lower than the aggregate production volumes of 377,968 boe in the corresponding period in 2024 for the reasons set out above. 

 

 

Operations

 

The war in Ukraine has significantly affected fiscal and economic stability in the country, and the oil and gas sector in Ukraine has been particularly affected by interruptions to power supplies, the unavailability of oil field equipment and services and disruptions to the markets, including weaker demand, for the sale of gas, condensate, oil and LPG. These disruptions impacted the Group's realised hydrocarbon prices in Ukraine, in turn impacting the Group's revenues and profitability during the period.

 

During the first half of 2025, the Group continued to refine its geological subsurface models of the MEX-GOL, SV and VAS fields, as well as the SC licence area, in order to enhance its strategy for the further development of such fields and licence area, including the timing and level of future capital investment required to exploit the hydrocarbon resources. 

At the MEX-GOL and SV fields, limited operational activities were undertaken in the period up to the reinstatement of the suspensions of these licences on 22 January 2025, after which all operational activities were suspended. At these fields, until the reinstatement of the suspensions, the Group continued to operate each of the SV-2 and SV-12 wells under joint venture agreements with PJSC Ukrnafta, the majority State-owned oil and gas producer. Under the agreements, the gas and condensate produced from the respective wells is sold under an equal net profit sharing arrangement between the Group and PJSC Ukrnafta, with the Group accounting for the hydrocarbons produced and sold from the wells as revenue, and the net profit share due to PJSC Ukrnafta being treated as a lease expense in cost of sales. However, following the SV-2 well experiencing water ingress, a workover of this well was undertaken to replace the production string and remove obstructions in the well, but this work was unsuccessful and further remedial work is not being considered at the present time.

 

At the VAS field, production operations were undertaken in the period up to the reinstatement of the suspension of this licence on 27 February 2025, after which all operational activities were suspended.

 

At the SC exploration licence area, development work continued, and this included planning for the installation of new gas processing facilities and other surface infrastructure as well as assessing the feasibility of an alternative option to connect to existing gas processing facilities.

 

Outlook 

 

The ongoing war in Ukraine has caused significant disruption to the country as a whole and to the Group's business activities, and until there is a resolution to the war, the disruption and uncertainty are likely to continue. Subject to resolution of the current regulatory issues with the Ukrainian authorities and it being safe to do so, during the remainder of 2025 and 2026, the Group plans to continue the development of its fields to the extent it is possible to do so.

 

However, such work at the MEX-GOL, SV and VAS fields, will remain suspended until there is a resolution of the regulatory issues, including the lifting of the suspension orders made in respect of those licences.

 

At the SC licence area, the work on development plans for the licence area will continue.

 

Finally, I would like to add my thanks to all of our staff for the continued hard work and dedication they have shown over the course of 2025 to date, and to especially recognise their continuing efforts and professionalism in the face of the extremely challenging current situation in Ukraine.

 

 

Oleksiy Zayets

Chief Executive Officer

 

 

Finance Review

 

The periods of suspension of its production licences and the resultant reduced production and sales volumes for much of the first half of 2025 resulted in the Group making a net loss for the period of $1.4 million (1H 2024: $12.6 million profit).

 

Revenue for the period, derived from the sale of the Group's Ukrainian gas, condensate, oil and LPG production, was down 86% at $3.4 million (1H 2024: $23.7 million), primarily as a result of the much lower production rates due to the licence suspensions. 

 

Aggregate daily production for the first half of 2025 was down approximately 10% at 1,865 boepd (1H 2024: 2,077 boepd), in each case calculated on the days when the Group's fields were actually in production, primarily due to the suspension of the MEX-GOL, SV and VAS production licences, as well as the disruption to operations and ongoing reduced levels of field development as a result of the war in Ukraine and natural field decline. Aggregate production volumes for the period were 48,962 boe, which is lower than the aggregate production volumes of 377,968 boe in the corresponding period in 2024 for the same reasons. 

 

During the first half of 2025, while there was less volatility in global, and particularly European, gas prices, the war in Ukraine continued to disrupt the Ukrainian gas market. Nevertheless, there was an improvement in realised gas sales prices, resulting in a 23% increase in average gas price realisations in the period at $377/Mm³ (UAH15,836/Mm³). Average sales prices for condensate declined by 15% at $63/bbl. Following the successful workover of the MEX-102 well, oil production commenced during October 2024 with average realised oil prices of $64/bbl. There were no LPG sales in the period due to a delay in the renewal of the Group's LPG production licence. Since 1 March 2025, there have been no hydrocarbon sales as a result of the suspension of the MEX-GOL, SV and VAS production licences.

 

Gross profit for the period was 91% lower at $1.4 million (1H 2024: $15.5 million) due to the much lower production rates caused by the licence suspensions. Cash generated from operations was negative at $2.0 million (1H 2024: $21.3 million) for similar reasons.  

 

Cost of sales for the period was also proportionately lower at $2.0 million (1H 2024: $8.2 million), with the decline in production resulting in a decline in depreciation as well as reducing the revenue-related costs of taxes and well rental.

 

The subsoil tax rates applicable to gas production were stable during the first six months of 2025 as follows:

 

(i)	when gas prices are up to $150/Mm3, the rate for wells drilled prior to 1 January 2018 ("old wells") is 14.5% for gas produced from deposits at depths shallower than 5,000 metres and 7% for gas produced from deposits deeper than 5,000 metres, and for wells drilled after 1 January 2018 ("new wells") is 6% for gas produced from deposits at depths shallower than 5,000 metres and 3% for gas produced from deposits deeper than 5,000 metres;
(ii)	when gas prices are between $150/Mm3 and $400/Mm3, the rate for old wells is 29% for gas produced from deposits at depths shallower than 5,000 metres and 14% for gas produced from deposits deeper than 5,000 metres, and for new wells is 12% for gas produced from deposits at depths shallower than 5,000 metres and 6% for gas produced from deposits deeper than 5,000 metres;
(iii)	when gas prices are more than $400/Mm3, for the first $400/Mm3, the rate for old wells is 29% for gas produced from deposits at depths shallower than 5,000 metres and 14% for gas produced from deposits deeper than 5,000 metres, and for new wells is 12% for gas produced from deposits at depths shallower than 5,000 metres and 6% for gas produced from deposits deeper than 5,000 metres, and for the difference between $400/Mm3 and the actual price, the rate for old wells is 65% for gas produced from deposits at depths shallower than 5,000 metres and 31% for gas produced from deposits deeper than 5,000 metres, and for new wells is 36% for gas produced from deposits at depths shallower than 5,000 metres and 18% for gas produced from deposits deeper than 5,000 metres

 

 

 

The subsoil tax rates applicable to condensate and oil production were 31% for condensate and oil produced from deposits shallower than 5,000 metres and 16% for condensate and oil produced from deposits deeper than 5,000 metres, for both old and new wells.

 

As a direct result of the war in Ukraine, including the significant decline in domestic consumption disrupting the previous supply, demand and pricing dynamics, there has been a divergence between domestic and European gas pricing, and accordingly, the methodology (linked to European prices) used to determine the reference gas price for the subsoil tax rates has had a significantly detrimental effect for domestic gas producers. In order to address this issue, legislation was implemented in August 2022 which modified such methodology to ensure that it operates as originally intended (with such reference price being aligned with domestic prices). 

 

Administrative expenses for the period were higher at $2.9 million (1H 2024: $2.4 million) as a result of higher staff and consultancy costs.

 

The tax charge for the six months ended 30 June 2025 was lower at $2.0 million (1H 2024: $4.2 million), and comprised a current tax charge of $0.4 million (1H 2024: $3.1 million) and a deferred tax charge of $1.6 million (1H 2024: $1.1 million).      

 

A deferred tax asset relating to the Group's provision for decommissioning as at 30 June 2025 of $0.7 million (31 December 2024: $0.6 million) was recognised on the tax effect of the temporary differences of the Group's provision for decommissioning at the MEX-GOL and SV fields, and its tax base. A deferred tax liability relating to the Group's development and production assets at the MEX-GOL and SV fields as at 30 June 2025 of $8.1 million (31 December 2024: $6.4 million) was recognised on the tax effect of the temporary differences between the carrying value of the Group's development and production asset at the MEX-GOL and SV fields, and its tax base.

A deferred tax asset relating to the Group's provision for decommissioning as at 30 June 2025 of $0.4 million (31 December 2024: $0.4 million) was recognised on the tax effect of the temporary differences on the Group's provision on decommissioning at the VAS field, and its tax base. A deferred tax asset relating to the Group's development and production assets at the VAS field as at 30 June 2025 of $0.1 million (31 December 2024:  $0.1 million) was recognised on the tax effect of the temporary differences between the carrying value of the Group's development and production asset at the VAS field, and its tax base.

 

Capital investment of $0.2 million reflects the greatly reduced investment in the Group's oil and gas development and production assets during the period (1H 2024: $0.5 million). The low level of capital investment in the period is a function of the deferral of certain aspects of the Group's development plans necessitated by the ongoing war in Ukraine and the suspension of the Group's MEX-GOL, SV and VAS licences since November 2024.

 

A review of any indicators of impairment of the carrying value of the Group's assets was undertaken at the period end and this review concluded that the suspension of the MEX-GOL, SV and VAS production licence had resulted in such an indicator. Impairment reviews were therefore conducted on the carrying value of the Group's assets but did not result in the recognition of any further impairment loss (1H 2024: $nil).

 

Cash and cash equivalents held as at 30 June 2025 were higher at $100.7 million (1H 2024: $93.7 million). The Group's cash and cash equivalents balance as at 22 September 2025 was $100.2 million, held as to $84.2 million equivalent in Ukrainian Hryvnia and the balance of $16.0 million equivalent predominantly in US Dollars, Euros and Pounds Sterling.

 

During the first six months of 2025, the Ukrainian Hryvnia was stable against the US Dollar, at UAH42.0/$1.00 on 31 December 2024 and UAH41.6/$1.00 on 30 June 2025. The impact of this was $1.6 million of foreign exchange gain (1H 2024: $8.9 million of foreign exchange loss). Increases and decreases in the value of the Ukrainian Hryvnia against the US Dollar affect the carrying value of the Group's assets. The official exchange rate of the Ukrainian Hryvnia to the US Dollar on 22 September 2025 was UAH41.25/$1.00. 

 

Cash from operating activities has funded capital investment during the first six months of 2025, and along with the Group's current cash position, are the sources from which the Group plans to fund the limited development programmes for its assets over the remainder of 2025 and beyond. This is coupled with the fact that the Group has no debt covenants that may otherwise impede its ability to implement contingency plans if domestic and/or global circumstances dictate. This flexibility and ability to monitor and manage development plans and liquidity is a cornerstone of our planning, and underpins our assessments of the future. The annual Group running costs of less than $8 million are currently covered by interest income from the Group's monetary resources at the end of the period of $100.7 million, meaning that the Group remains in a very strong position, notwithstanding the impact of the current regulatory actions of the Ukrainian authorities and the war in Ukraine, as well as any local or global shocks that may occur to the industry and/or the Group.

 

 

 

Bruce Burrows

Finance Director

 

 

Principal Risks and How We Manage Them

 

The Group has a risk evaluation methodology in place to assist in the review of the risks across all material aspects of its business. This methodology highlights external, operational and technical, financial and corporate risks and assesses the level of risk and potential consequences. It is periodically presented to the Audit Committee and the Board for review, to bring to their attention potential risks and, where possible, propose mitigating actions. Key risks recognised and mitigation factors are detailed below:-

 

Risk	Mitigation
External risks
War in Ukraine
On 24 February 2022, Russia invaded Ukraine and there is currently a serious and ongoing war within Ukraine. This war is having a huge impact on Ukraine and its population, with significant destruction of infrastructure and buildings in the areas of conflict, as well as damage in other areas of Ukraine. The war is resulting in significant casualties and has caused a huge humanitarian catastrophe and refugee influx into neighbouring countries. The war is also impacting the fiscal and economic environment in Ukraine, as well as the financial stability and banking system in Ukraine, including restrictions on the transfer of funds outside Ukraine. The war is an escalation of the previous regional conflict risk faced by the business, a dispute that has been going on since 2014 in parts of eastern Ukraine, and since that time Russia has continued to occupy Crimea. The current war is also having a significant adverse effect on the Ukrainian financial markets, hampering the ability of Ukrainian companies and banks to obtain funding from the international capital and debt markets. The war has disrupted the Group's business and operations, causing periods of suspension of field operations, and has also impacted the supply of materials and equipment and the availability of contractors to undertake field operations. At present, the war is ongoing and the scope and duration of the war is uncertain.	The Group has assets in the areas of conflict in the east of Ukraine, and the war has disrupted its operations in those areas. The Group had been undertaking only limited field and production operations at the MEX-GOL, SV and VAS fields, as well as the SC licence area, until the suspension of the MEX-GOL, SV and VAS licences in November 2024. During production operations at the fields, inventories of hydrocarbons are being maintained at minimum levels. At the sites where operations are suspended, there are no staff permanently on site, except for necessary security staff. Where possible, all other staff work remotely and have been supplied with all necessary devices and software to facilitate remote working. Additionally, the Group aims to maintain a significant proportion of its cash resources outside Ukraine. The Group continues to monitor the situation and endeavours to protect its assets and safeguard its staff and contractors.
Risk relating to Ukraine
Ukraine is an emerging market and as such the Group is exposed to greater regulatory, economic and political risks than it would be in other jurisdictions. Emerging economies are generally subject to a volatile political and economic environment, which makes them vulnerable to market downturns elsewhere in the world and could adversely impact the Group's ability to operate in the market. Furthermore, the war in Ukraine is impacting the social, fiscal and economic environment, the financial and banking system, and the economic stability of Ukraine. As a result, Ukraine will require financial assistance and/or aid from international financial agencies to provide economic support and assist with the reconstruction of infrastructure and buildings damaged in the war.	The Group minimises this risk by continuously monitoring the market in Ukraine and by maintaining as strong a working relationship as possible with the Ukrainian regulatory authorities. The Group also maintains a significant proportion of its cash holdings in international banks outside Ukraine.
Banking system in Ukraine
The banking system in Ukraine has been under great strain in recent years due to the weak level of capital, low asset quality caused by the economic situation, currency depreciation, changing regulations and other economic pressures generally, and so the risks associated with the banks in Ukraine have been significant, including in relation to the banks with which the Group has operated bank accounts. This situation was improving moderately following remedial action by the National Bank of Ukraine, but the current war has significantly affected such improvements, and the National Bank of Ukraine has imposed a number of restrictive measures designed to protect the banking system, including restrictions on the transfer of funds outside Ukraine (albeit that the Group aims to maintain a significant proportion of its cash resources outside Ukraine). In addition, Ukraine continues to be supported by funding from the International Monetary Fund.	The creditworthiness and potential risks relating to the banks in Ukraine are regularly reviewed by the Group, but the geopolitical and economic events in Ukraine over recent years have significantly weakened the Ukrainian banking sector. This has been exacerbated by the current war in Ukraine. In light of this, the Group has taken and continues to take steps to diversify its banking arrangements between a number of banks in Ukraine. These measures are designed to spread the risks associated with each bank's creditworthiness, and the Group endeavours to use banks that have the best available creditworthiness. Nevertheless, and despite the recent improvements, the Ukrainian banking sector remains weakly capitalised and so the risks associated with the banks in Ukraine remain significant, including in relation to the banks with which the Group operates bank accounts. As a consequence, the Group also maintains a significant proportion of its cash holdings in international banks outside Ukraine.
Geopolitical environment in Ukraine
Although there were some improvements in recent years, there has not been a final resolution of the political, fiscal and economic situation in Ukraine, and the current war has had a severe detrimental effect on the economic situation in Ukraine. The ongoing effects of this are difficult to predict and likely to continue to affect the Ukrainian economy and potentially the Group's business. This situation is currently affecting the Group's production and field operations, and the ongoing instability is disrupting the Group's development and operational planning for its assets.	The Group continually monitors the market and business environment in Ukraine and endeavours to recognise approaching risks and factors that may affect its business. However, the war in Ukraine creates material challenges in planning future investment and operations. The Group is limiting its operational activities to minimise risk to its staff and contractors, and to limit its financial exposure.
Climate change
Any near and medium-term continued warming of the planet can have potentially increasing negative social, economic and environmental consequences, generally, globally and regionally, and specifically in relation to the Group. The potential impacts include: loss of market; and increased costs of operations through increasing regulatory oversight and controls, including potential effective or actual loss of licences to operate. As a diligent operator aware of and responsive to its good stewardship responsibilities, the Group not only needs to monitor and modify its business plans and operations to react to changes, but also to ensure its environmental footprint is as minimal as it can practicably be in managing the hydrocarbon resources the Group produces.	The Group's plans include: assessing, reducing and/or mitigating its emissions in its operations; and identifying climate change-related risks and assessing the degree to which they can affect its business, including financial implications. The HSE Committee is specifically tasked with overseeing, measuring, benchmarking and mitigating the Group's environmental and climate impact, which will be reported on in future periods. At this stage, the Group does not consider climate change to have any material implications for the Group's financial statements, including accounting estimates.
Operational and technical risks
Quality, Health, Safety and Environment ("QHSE")
The oil and gas industry, by its nature, conducts activities which can cause health, safety, environmental and security incidents. Serious incidents can not only have a financial impact but can also damage the Group's reputation and the opportunity to undertake further projects. The war in Ukraine poses significant risks to field operations, by way of potential threat to the lives of employees and contractors, and damage to equipment and infrastructure.	The Group maintains QHSE policies and requires that management, staff and contractors adhere to these policies. The policies ensure that the Group meets Ukrainian legislative standards in full and achieves international standards to the maximum extent possible. As a consequence of the current war in Ukraine and the periods of suspension of the Group's production licences, only limited field operations have been undertaken at the Group's fields. Only essential staff are located at site, and all other staff are working remotely, either from areas away from the conflict areas or outside Ukraine. The Group has invested in technology that allows many staff to work just as effectively from remote locations.
Industry risks
The Group is exposed to risks which are generally associated with the oil and gas industry. For example, the Group's ability to pursue and develop its projects and undertake development programmes depends on a number of uncertainties, including the availability of capital, seasonal conditions, regulatory approvals, gas, condensate, oil and LPG prices, development costs and drilling success. As a result of these uncertainties, it is unknown whether potential drilling locations identified on proposed projects will ever be drilled or whether these or any other potential drilling locations will be able to produce gas, condensate or oil. In addition, drilling activities are subject to many risks, including the risk that commercially productive reservoirs will not be discovered. Drilling for hydrocarbons can be unprofitable, not only due to dry holes, but also as a result of productive wells that do not produce sufficiently to be economic. In addition, drilling and production operations are highly technical and complex activities and may be curtailed, delayed or cancelled as a result of a variety of factors.	The Group has well qualified and experienced technical management staff to plan and supervise operational activities. In addition, the Group engages with suitably qualified local and international geological, geophysical and engineering experts and contractors to supplement and broaden the pool of expertise available to the Group. Detailed planning of development activities is undertaken with the aim of managing the inherent risks associated with oil and gas exploration and production, as well as ensuring that appropriate equipment and personnel are available for the operations, and that local contractors are appropriately supervised.
Production of hydrocarbons
Producing gas and condensate reservoirs are generally characterised by declining production rates which vary depending upon reservoir characteristics and other factors. Future production of the Group's gas and condensate reserves, and therefore the Group's cash flow and income, are highly dependent on the Group's success in operating existing producing wells, drilling new production wells and efficiently developing and exploiting any reserves, and finding or acquiring additional reserves. The Group may not be able to develop, find or acquire reserves at acceptable costs. The experience gained from drilling undertaken to date highlights such risks as the Group targets the appraisal and production of these hydrocarbons.	In recent years, the Group has engaged external technical consultants to undertake a comprehensive review and re-evaluation study of the MEX-GOL and SV fields in order to gain an improved understanding of the geological aspects of the fields and reservoir engineering, drilling and completion techniques, and the results of this study and further planned technical work are being used by the Group in the future development of these fields. The Group has established an ongoing relationship with such external technical consultants to ensure that technical management and planning is of a high quality in respect of all development activities on the Group's fields.
Risks relating to the further development and operation of the Group's gas and condensate fields in Ukraine
The planned development and operation of the Group's gas and condensate fields in Ukraine is susceptible to appraisal, development and operational risk. This could include, but is not restricted to, delays in the delivery of equipment in Ukraine, failure of key equipment, lower than expected production from wells that are currently producing, or new wells that are brought on-stream, problematic wells and complex geology which is difficult to drill or interpret. The generation of significant operational cash is dependent on the successful delivery and completion of the development and operation of the fields. The war in Ukraine is impacting planning and implementation of development and operations at the Group's fields.	The Group's technical management staff, in consultation with its external technical consultants, carefully plan and supervise development and operational activities with the aim of managing the risks associated with the further development of the Group's fields in Ukraine. This includes detailed review and consideration of available subsurface data, utilisation of modern geological software, and utilisation of engineering and completion techniques developed for the fields. With regards to operational activities, the Group ensures that appropriate equipment and personnel are available for the operations, and that operational contractors are appropriately supervised. In addition, the Group performs a review of indicators of impairment of its oil and gas assets on an annual basis, and considers whether an assessment of its oil and gas assets by a suitably qualified independent assessor is appropriate or required.
Drilling and workover operations
Due to the depth and nature of the reservoirs in the Group's fields, the technical difficulty of drilling or re-entering wells in the Group's fields is high, and this and the equipment limitations within Ukraine, can result in unsuccessful or lower than expected outcomes for wells.	The utilisation of detailed sub-surface analysis, careful well planning and engineering in designing work programmes, along with appropriate procurement procedures and competent on-site management, aims to minimise these risks.
Maintenance of facilities
There is a risk that production or transportation facilities can fail due to non-adequate maintenance, control or poor performance of the Group's suppliers.	The Group's facilities are operated and maintained at standards above the Ukrainian minimum legal requirements. Operations staff are experienced and receive supplemental training to ensure that facilities are properly operated and maintained. Service providers are rigorously reviewed at the tender stage and are monitored during the contract period.
Financial risks
Exposure to cash flow and liquidity risk
There is a risk that insufficient funds are available to meet the Group's development obligations to commercialise the Group's oil and gas assets. Since a significant proportion of the future capital requirements of the Group is expected to be derived from operational cash generated from production, including from wells yet to be drilled, there is a risk that in the longer term insufficient operational cash is generated, or that additional funding, should the need arise, cannot be secured. The war in Ukraine has disrupted production operations at the Group's fields, and consequently reduced anticipated cash flows from those fields, and this has increased the risk regarding sufficiency of capital for development. In addition, the conflict may disrupt the sales market for hydrocarbons that are produced. Currently, however, hydrocarbon prices are reasonably strong, which is ameliorating the potential reduction in cash flows, and the Group's sales counterparties are meeting their financial obligations. In addition to the risk of operational cash shortfalls, there is a risk that even with strong cash flows and cash balances, the Group, from time to time, can suffer from non-Ukrainian operational banking appetite for businesses such as the Group's business, which can ultimately manifest itself in having restricted access to banking services.	The Group maintains adequate cash reserves and closely monitors forecasted and actual cash flow, as well as short and longer-term funding requirements. The Group aims to maintain a significant proportion of its cash resources outside Ukraine. The Group does not currently have any loans outstanding, internal financial projections are regularly made based on the latest estimates available, and various scenarios are run to assess the robustness of the Group's liquidity. However, as the risk to future capital funding is inherent in the oil and gas exploration and development industry and reliant in part on future development success, it is difficult for the Group to take any other measures to further mitigate this risk, other than tailoring its development activities to its available capital funding from time to time. The Group aims to maintain as diverse a range of banking relationships as possible to reduce the risks associated with limited accessibility to banking services which may exist from time to time.
Ensuring appropriate business practices
The Group operates in Ukraine, an emerging market, where certain inappropriate business practices may, from time to time occur, such as corrupt business practices, bribery, appropriation of property and fraud, all of which can lead to financial loss.	The Group maintains anti-bribery and corruption policies in relation to all aspects of its business, and ensures that clear authority levels and robust approval processes are in place, with stringent controls over cash management and the tendering and procurement processes. In addition, office and site protection is maintained to protect the Group's assets.
Hydrocarbon price risk
The Group derives its revenue principally from the sale of its Ukrainian hydrocarbon production. These revenues are subject to commodity price volatility and political influence. A prolonged period of low hydrocarbon prices may impact the Group's ability to maintain its long-term investment programme with a consequent effect on its growth rate, which in turn may impact the Company's share price or any shareholder returns. Lower hydrocarbon prices may not only decrease the Group's revenues per unit, but may also reduce the amount of hydrocarbons which the Group can produce economically, as would increases in costs associated with hydrocarbon production, such as subsoil taxes and royalties. The overall economics of the Group's key assets (being the net present value of the future cash flows from its Ukrainian projects) are far more sensitive to long-term hydrocarbon prices than short-term price volatility. However, short-term volatility does affect liquidity risk, as, in the early stage of the projects, income from production revenues is offset by capital investment. In addition, the war in Ukraine has disrupted the sales market for hydrocarbons.	The Group sells a proportion of Its hydrocarbon production through offtake arrangements, which include pricing formulae so as to ensure that it achieves market prices for its products, as well as utilising the electronic market platforms in Ukraine to achieve market prices for its remaining products. However, hydrocarbon prices in Ukraine are, in the longer-term, linked to world hydrocarbon prices and so the Group is subject to external price trends, as well as shorter-term volatility in the Ukrainian hydrocarbon market.
Currency risk
Since the beginning of 2014, the Ukrainian Hryvnia significantly devalued against major world currencies, including the US Dollar, where it has fallen from UAH8.3/$1.00 on 1 January 2014 to UAH42.0/$1.00 on 31 December 2024, and UAH41.25/$1.00 on 22 September 2025. This devaluation has been a significant contributor to the imposition of banking restrictions by the National Bank of Ukraine over recent years. In addition, the geopolitical events in Ukraine over recent years and the current war in Ukraine are likely to continue to impact the valuation of the Ukrainian Hryvnia against major world currencies. Further devaluation of the Ukrainian Hryvnia against the US Dollar will affect the carrying value of the Group's assets.	The Group's sales proceeds are received in Ukrainian Hryvnia, and the majority of the capital expenditure costs for the current investment programme will be incurred in Ukrainian Hryvnia, thus the currency of revenue and costs are largely matched. In light of the previous devaluation and volatility of the Ukrainian Hryvnia against major world currencies, and since the Ukrainian Hryvnia does not benefit from the range of currency hedging instruments which are available in more developed economies, the Group has adopted a policy that, where possible, funds not required for use in Ukraine be retained on deposit in the United Kingdom and Europe, principally in US Dollars.
Counterparty and credit risk
The challenging political and economic environment in Ukraine and current war means that businesses can be subject to significant financial strain, which can mean that the Group is exposed to increased counterparty risk if counterparties fail or default in their contractual obligations to the Group, including in relation to the sale of its hydrocarbon production, resulting in financial loss to the Group.	The Group monitors the financial position and credit quality of its contractual counterparties and seeks to manage the risk associated with counterparties by contracting with creditworthy contractors and customers. Hydrocarbon production is sold on terms that limit supply credit and/or title transfer until payment is received.
Financial markets and economic outlook
The performance of the Group is influenced by global economic conditions and, in particular, the conditions prevailing in the United Kingdom and Ukraine. The economies in these regions have been subject to volatile pressures in recent periods, with the global economy having experienced a long period of difficulty, the COVID pandemic, and more particularly the current war in Ukraine. This has led to extreme foreign exchange movements in the Ukrainian Hryvnia, high inflation and interest rates, and increased credit risk relating to the Group's key counterparties.	The Group's sales proceeds are received in Ukrainian Hryvnia and a significant proportion of investment expenditure is made in Ukrainian Hryvnia, which minimises risks related to foreign exchange volatility. However, hydrocarbon prices in Ukraine are implicitly linked to world hydrocarbon prices and so the Group is subject to external price movements. The Group holds a material proportion of its cash reserves in the United Kingdom and Europe, mostly in US Dollars, with reputable financial institutions. The financial status of counterparties is carefully monitored to manage counterparty risks. Nevertheless, the overall exposure that the Group faces as a result of these risks cannot be predicted and many of these are outside of the Group's control.
Corporate risks
Ukrainian production licences
The Group operates in a region where the right to production can be challenged by State and non-State parties. During 2010, this manifested itself in the form of a Ministry Order instructing the Group to suspend all operations and production from its MEX-GOL and SV production licences, which was not resolved until mid-2011. In 2013, new rules relating to the updating of production licences led to further challenges being raised by the Ukrainian authorities to the production licences held by independent oil and gas producers in Ukraine, including the Group. In March 2019, a Ministry Order was issued instructing the Group to suspend all operations and production from its VAS production licence, which was not resolved until March 2023. In 2020, LLC Arkona Gas-Energy ("Arkona") faced a challenge from PJSC Ukrnafta concerning the validity of its SC exploration licence, which was not ultimately resolved in Arkona's favour until February 2021. During 2023, the Ukrainian authorities took a number of regulatory actions against the Group, which culminated in Ministry Orders being made in May 2023 to suspend all operations and production on the VAS production licence and SC exploration licence area, which suspensions were not lifted until June 2024. In November 2024, a Ministry Order was issued to suspend all operations and production at the MEX-GOL, SV and VAS production licences, which suspensions, although temporarily lifted, currently remain in force. Excepting the current suspension orders made in respect of the MEX-GOL, SV and VAS production licences, all such challenges affecting the Group have been successfully defended through the Ukrainian legal system. The business environment is such that these types of challenges may arise at any time in relation to the Group's operations, licence history, compliance with licence commitments and/or local regulations. In addition, production licences in Ukraine are issued with and/or carry ongoing compliance obligations, which if not met, may lead to the loss of a licence.	The Group ensures compliance with commitments and regulations relating to its production and exploration licences through Group procedures and controls or, where this is not immediately feasible for practical or logistical considerations, seeks to enter into dialogue with the relevant Government bodies with a view to agreeing a reasonable time frame for achieving compliance or an alternative, mutually agreeable course of action. Work programmes are designed to ensure that all licence obligations are met and continual interaction with Government bodies is maintained in relation to licence obligations and commitments.
Risks relating to key personnel
The Group's success depends upon skilled management as well as technical expertise and administrative staff. The loss of service of critical members from the Group's team could have an adverse effect on the business. The current war in Ukraine has meant that, as far as possible, the Group's staff have needed to move away from areas of conflict and work remotely.	The Group periodically reviews the compensation and contractual terms of its staff. In addition, the Group has developed relationships with a number of technical and other professional experts and advisers, who are used to provide specialist services as required. As a result of the war, only essential staff are located at site, and all other staff are working remotely, either from areas away from the conflict areas or outside Ukraine. The Group has invested in technology that allows many staff to work just as effectively from remote locations.

 

 

 

Directors' Responsibility Statement

 

The Directors confirm that, to the best of their knowledge:

 

a)       the unaudited condensed interim consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' ("IAS 34") and the AIM Rules for Companies; and

 

b)       these unaudited interim results include:

 

(i)   a fair review of the information required (i.e. an indication of important events and their impact and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

 

(ii)   a fair review of the information required on related party transactions.

 

A list of current Directors is maintained on the Group's website, www.enwell-energy.com.

 

Condensed Interim Consolidated Income Statement

 

		6 months ended	6 months ended
		30 Jun 25	30 Jun 24
		(unaudited)	(unaudited)
	Note	$000	$000
Revenue	3	3,395	23,698
Cost of sales	4	(2,031)	(8,152)
Gross profit		1,364	15,546
Administrative expenses		(2,871)	(2,365)
Other operating gains, (net)	5	2,495	3,685
Operating profit		988	16,866
Net income from investments		-	446
Net impairment gains/(losses) on financial assets		117	(136)
Other (losses), (net)		(57)	(63)
Finance costs, (net)		(393)	(309)
Profit before taxation		655	16,804
Income tax expense	6	(2,030)	(4,197)
(Loss)/profit for the period		(1,375)	12,607
Earnings per share (cents)
Basic and diluted	7	(0.4)c	3.9c

 

 

The Notes set out below are an integral part of these unaudited condensed interim consolidated financial statements.

 

Condensed Interim Consolidated Statement of Comprehensive Income

 

	6 months ended	6 months ended
	30 Jun 25	30 Jun 24
	(unaudited)	(unaudited)
	$000	$000
(Loss)/profit for the period	(1,375)	12,607
Other comprehensive income/(loss):
Items that may be subsequently reclassified to profit or loss:
Equity - foreign currency translation	1,591	(8,901)
Total other comprehensive income/(loss)	1,591	(8,901)
Total comprehensive income/(loss) for the period	216	3,706

 

 

 

The Notes set out below are an integral part of these unaudited condensed interim consolidated financial statements.

 

Condensed Interim Consolidated Balance Sheet

 

		30 Jun 25	31 Dec 24
		(unaudited)	(audited)
	Note	$000	$000
Assets
Non-current assets
Property, plant and equipment	8	72,802	72,083
Intangible assets	9	7,317	7,317
Right-of-use assets		509	633
Deferred tax asset	6	399	363
Prepayments for fixed assets		48	363
Non-current receivables		52	51
		81,127	80,810
Current assets
Inventories		2,989	3,152
Trade and other receivables	10	5,682	7,648
Cash and cash equivalents	12	100,697	99,398
		109,368	110,198
Total assets		190,495	191,008
Liabilities
Current liabilities
Trade and other payables		(1,406)	(3,286)
Lease liabilities		(351)	(343)
Corporation tax payable		(119)	(974)
Interest		(12)	-
		(1,888)	(4,603)
Net current assets		107,480	105,595
Non-current liabilities
Provision for decommissioning	11	(8,550)	(8,276)
Lease liabilities		(338)	(492)
Defined benefit liability		(321)	(323)
Deferred tax liability	6	(7,400)	(5,796)
Loans		(276)	-
Other non-current liabilities		(66)	(78)
		(16,951)	(14,965)
Total liabilities		(18,839)	(19,568)
Net assets		171,656	171,440
Equity
Called up share capital		28,115	28,115
Foreign exchange reserve		(159,437)	(161,028)
Other reserve		4,273	4,273
Retained earnings		298,705	300,080
Total equity		171,656	171,440

 

 

 

The Notes set out below are an integral part of these unaudited condensed interim consolidated financial statements.