Enwell Energy Share News (ENW)

(Sharecast News) - Oil and gas exploration and production company Enwell Energy updated the market on the Ukraine legal proceedings relating to the Svystunivsko-Chervonolutskyi exploration licence on Wednesday.
The AIM-traded firm said the licence is held by Arkona Gas-Energy, which it acquired in March.

It had indicated on 3 July that the claimant, NJSC Ukrnafta, has brought legal proceedings against defendant Arkona, in which NJSC Ukrnafta asserted that irregular procedures were followed in the grant of the licence to Arkona in May 2017.

NJSC Ukrnafta was the holder of a previous licence over the area, which expired before the grant of the licence, with Arkona disputing those claims.

"In early July, the First Instance Court in Ukraine announced a ruling in favour of NJSC 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," the board explained in its statement.

"However, in early August, Arkona filed an appeal of this decision in the Appellate Administrative Court in Kyiv, and pending the hearing of this appeal, the licence remained valid."

A hearing of that appeal was held on Tuesday, with Enwell reporting that the Appellate Administrative Court ruled in favour of Arkona, overturning the earlier decision of the First Instance Court.

"The full decision and written judgement have not yet been delivered by the court and will follow in due course, and if appropriate, a further announcement will be made."