Enwell Energy PLC slumped 26% to 12p following a change in legislation in Ukraine which “may adversely affect the company’s hydrocarbon extraction licenses”.
The AIM-listed oil and gas exploration and production company said the new law will come into force on 28 March this year and is designed to improve the regulatory process relating to the exploration and development of natural resources in Ukraine.
However, provisions in the legislation will allow the Ukrainian government to suspend or revoke a mineral or hydrocarbon licence if the ultimate owner of the licence becomes the subject of sanctions from the Ukrainian government.
Vadym Novynskyi, who owns a major indirect shareholding interest in Enwell, is currently sanctioned by the Ukrainian government, meaning the company’s licences could be impacted by these new provisions.