Enwell Energy PLC shares rose as it announced the successful completion of a well in Ukraine.
The SC-4 well was spudded in August 2021 and hit oil in three intervals. Now, production testing has shown that the primary target zone has demonstrated strong productivity and stabilised flows, the company said in a statement.
Following further testing, it produced at a rate of 3mln cubic feet of gas per day plus condensate amounting overall to a rate of 535 barrels of oil equivalent per day.
The well will now be suspended for future production.
Enwell told investors that it plans to continue its planning for the development of the SC Licence, which will include the installation of flow lines, gas processing facilities and other production infrastructure, as well as the drilling of further wells.
SC-4 is the company’s first well on the SC licence which is located in north-east Ukraine, in the Poltava region between the cities of Kyiv and Kharkiv.
“We are extremely pleased with the results of the SC-4 well, which was drilled safely and successfully,” said chief executive Sergii Glazunov.
“The completion of the well in the current extremely challenging environment in Ukraine is a great achievement by our team, and the strong flow rates recorded demonstrate the potential of this licence area, which we plan to develop as circumstances permit."
In London, Enwell shares gained 3.28% changing hands at 26.44p – though remain down 24% in 2022 to date.