UK-based energy company Pennpetro Energy has unveiled plans to advance the Limnytskyi oil and gas exploration licence in western Ukraine. 

In October this year, the company signed an agreement to acquire the licence, held through a Polish holding company. 

Pennpetro plans to reanalyse existing seismic data and complete the necessary environmental and drilling permits, road repairs and pad construction. 

The analysis aims to enable re-entry into a historic well by drilling a sidetrack to a depth of approximately 3,000m. 

According to the company, the well is located near an untested fault block identified by more recent 2D seismic lines. 

The well could require an additional sidetrack to assess hydrocarbon presence and further evaluate the licence's potential. 

Additionally, Pennpetro aims to develop a plan for the re-entry and to apply modern technology to advance production and generate cash flow. 

The company’s measures, alongside an ongoing reverse takeover process, are expected to reduce the time required to reach production. 

To support the activities, Pennpetro intends to increase the principal under its fully subscribed £250,000 ($33,2686) convertible loan with RMD Group.  

This increased investment will match the investment needed to complete the work, calculated monthly until the project is finished. 

However, if shareholders do not approve the resolutions before 23 December 2025, the additional investment will not be added to the loan.  

In such case, all issues related to shares will require clarification, and the works, assets and equipment will remain with RMD Group or the Polish holding company. 

They will continue drilling and production activities independently until Pennpetro resolves its compliance and funding matters. 

Pennpetro said that the additional funds from RMD Group are designated only for the work programme on the Limnytskyi oil and gas exploration licence. 

Pennpetro Energy chief operating officer Mavriky Kalugin said: “We now have a finite programme of works to take forward the Limnytskyi licence to reappraise well number two, we are due to issue tenders for the workover rig and key equipment in the coming weeks and will update shareholders once we are in a position to confirm key equipment availability. 

“This programme will give us a clearer understanding of the potential value held within the Limnytskyi area, which is already known to be considerable.”