Arkona Acquisition - Legal Dispute Update

30 September 2020

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

Arkona Acquisition - Legal Dispute Update - Appeal Result

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, as claimant, has brought legal proceedings against Arkona, as defendant, in which NJSC Ukrnafta has made claims asserting 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 this area which expired prior to the grant of the Licence. Arkona disputes these claims.

In early July 2020, 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. However, in early August 2020, 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 this appeal was held yesterday afternoon, and 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.

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

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