British Pennpetro Energy enters Ukrainian gas production

British company Pennpetro Energy Plc has announced the signing of a Heads of Terms agreement to acquire 100% of the rights to the Limnytska licence in the Ivano-Frankivsk region. This was reported in a statement by the company on the London Stock Exchange, where Pennpetro Energy shares are listed, according to ExPro.

Purchase agreement

 

The document provides for the company's intention to enter the Ukrainian oil and gas production sector through a holding structure established in Poland.

 

Pennpetro reported that the agreement is at a preliminary stage. It includes legal, financial and technical due diligence, coordination with regulators, and the subsequent signing of a final agreement for the sale and purchase of rights. Completion of the transaction will require the approval of Pennpetro shareholders and the London Stock Exchange.

Once it has obtained control of the licence, the company plans to resume the previously suspended well, conduct 3D seismic surveys and drill a new well to confirm commercial reserves.

"The signing of the agreement on the basic terms and conditions for the Limnytsia licence in Ukraine is a transformational step for our business. It adds an extremely promising asset to our growing portfolio and opens up the opportunity to turn it into a producing field that will contribute to Ukraine's energy independence, sovereignty and security. The requirements for Pennpetro associated with this licence are minimal, and the growth potential for the company is significant," said Pennpetro Energy CEO Stephen Lunn.

Limnytska Square

 

Limnytska Square is located in the Carpathian oil and gas basin in the Ivano-Frankivsk region. The area is 172 square kilometres. Special permit No. 2971 for oil and gas exploration and production in the Limnytska area was issued in 2007 to Geo Search Ltd., which remains the current subsoil user after the recent cancellation of the State Geological Service's order to revoke the permit.

Russian trace

In April 2023, the State Geological Service filed a lawsuit against Geoposuk Ltd. with the Ivano-Frankivsk District Administrative Court, demanding the cancellation of special permit No. 2971 for subsoil use. The reason was that among the ultimate beneficial owners of the company there is allegedly a Russian citizen, which, according to changes in the Subsurface Code (Law No. 2805-IX), is incompatible with the right to use Ukrainian subsurface resources. According to Nadra.Info, this likely referred to Alexander Yeltsov, who lived in the Czech Republic.

In July 2023, the court of first instance upheld the claim, recognising the permit as invalid. In February 2024, the Eighth Administrative Court of Appeal upheld this decision. In compliance with the court decisions, the State Geological Service issued Order No. 63 of 15 February 2024 to revoke the permit.

However, on 30 April 2025, the Supreme Court overturned the decisions of the lower courts, recognising that the cancellation had been carried out in violation of the law. The court noted that the state authority had not given the company the opportunity to remedy the identified violations and had not proven the existence of actual control by a Russian citizen. In compliance with the Supreme Court's ruling, on 5 May 2025, the State Geological Service issued Order No. 157, which cancelled the previous order on revocation. Thus, special permit No. 2971 for the Limnytska area was reinstated and its validity confirmed.

Who is Pennpetro Energy?

Pennpetro Energy Plc is a public company registered in 2016 in England and Wales. The company is engaged in oil and gas exploration and production, focusing on onshore projects in Texas (USA), particularly in Gonzales County, where it owns rights to more than 2,500 acres. Pennpetro has a number of subsidiaries, including Pennpetro USA Corp., Nobel Petroleum LLC and Pennpetro Greentec UK Limited.

The company's shares were traded on the London Stock Exchange under the ticker symbol PPP. In 2024, the company reported revenue of approximately £0.5 million with a net loss of £8.9 million. Recently, Pennpetro has been involved in joint gas and lithium extraction projects, including through a partnership.

On 16 October, British company Pennpetro Energy plc announced the appointment of Mauritius Kalugin as Executive Director and Chief Operating Officer (COO), who will be responsible for the technical and operational aspects of the company's activities. Kalugin confirmed his appointment to ExPro.

This appointment follows the announcement on 25 September 2025, when the company announced its intention to appoint a third executive director, in addition to the two that the RMD Group is entitled to delegate to the board of directors.

As reported by ExPro, Pennpetro Energy announced the signing of an agreement to acquire 100% of the rights to the Limnytska licence in western Ukraine.