Arkona Acquisition - Legal Dispute Update

RNS Number : 1897G

Enwell Energy PLC

23 November 2020

 

23 November 2020

Enwell Energy plc
("Enwell" or the "Company")

Arkona Acquisition - Legal Dispute Update - Further Appeal

Enwell Energy plc (AIM: ENW), the AIM-quoted oil and gas exploration and production group, provides an update on the Ukrainian legal proceedings relating to the Svystunivsko-Chervonolutskyi exploration licence (the "Licence") in Ukraine, which is held by LLC Arkona Gas-Energy ("Arkona"), which was acquired by Enwell in March 2020 (see announcement dated 24 March 2020) .

As announced on 3 July 2020, NJSC Ukrnafta ("Ukrnafta"), as claimant, has brought legal proceedings against Arkona, as defendant, in which Ukrnafta has made claims asserting that irregular procedures were followed in the grant of the Licence to Arkona in May 2017. Ukrnafta was the holder of a previous licence over this area which expired prior to the grant of the Licence. Arkona disputes these claims.

In July 2020, the First Instance Court in Ukraine announced a ruling in favour of Ukrnafta, and subsequently delivered its full decision and written judgement, which determined that the grant of the Licence was irregular, and accordingly, the Licence would be invalid.

In August 2020, Arkona filed an appeal of this decision in the Appellate Administrative Court in Kyiv, and on 29 September 2020, the Appellate Administrative Court ruled in favour of Arkona, overturning the earlier decision of the First Instance Court.

Ukrnafta has filed a further appeal in the Supreme Court in Kyiv, appealing the ruling made by the Appellate Administrative Court on 29 September 2020, which further appeal has now been accepted for consideration by the Supreme Court. This appeal will be heard by the Supreme Court in due course, and pending the hearing of this appeal, the Licence remains valid.

The Company's announcements dated 24 March 2020, 3 July 2020, 31 July 2020 and 30 September 2020 provide additional information.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Enwell Energy plc	Tel: [phone]
Chris Hopkinson, Chairman
Sergii Glazunov, Chief Executive Officer
Bruce Burrows, Finance Director
Strand Hanson Limited	Tel: [phone]
Rory Murphy / Richard Tulloch
Arden Partners plc	Tel: [phone]
Ruari McGirr / Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking)
Citigate Dewe Rogerson	Tel: [phone]
Louise Mason-Rutherford / Elizabeth Kittle

 

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