British company Pennpetro Energy Plc has signed a memorandum of understanding to acquire an exploration and production license for oil and gas in Ukraine. The deal concerns the Limnytska area in Ivano-Frankivsk region, covering 172 sq. km within the Carpathian oil and gas basin. The region has seen the discovery of more than a hundred fields over the decades, considered promising for production revival.
Pennpetro Energy plans to enter the Ukrainian market through a newly established Polish holding structure, which will act as the license buyer. The company has signed Heads of Terms with the current holder of the special permit — LLC “Geoposhuk LTD,” which owns license No. 2971, originally issued in 2007.
Following the completion of the acquisition, Pennpetro intends to launch an active operational phase: restore one suspended well, conduct 3D seismic exploration, and drill a new exploratory well to confirm commercial reserves. Preliminary assessments indicate strong geological conditions for hydrocarbon production, including oil and natural gas.
The company emphasized that the acquisition will proceed only after successful completion of legal and financial due diligence, obtaining all regulatory approvals, and signing final shareholder agreements.
Pennpetro Energy Chairman Stephen Lunn described the Limnytska area as a promising and strategic asset that could serve as the company’s entry point into Ukraine’s energy market. According to him, the project will support Ukraine’s energy independence, sovereignty, and security.
The special permit for exploration and production at the Limnytska area belongs to Geoposhuk LTD. Earlier media reports indicated that one of the firm’s ultimate beneficiaries is a Russian citizen registered in the Czech Republic, although Ukrainian regulators have not revoked the company’s subsoil use rights.
Pennpetro Energy Plc, founded in 2016 in the United Kingdom, specializes in oil and gas exploration and production and participates in joint energy and resource projects. Its subsidiaries include Pennpetro USA Corp., Nobel Petroleum LLC, and Pennpetro Greentec UK Limited.
Recently, the company has stepped up participation in joint natural gas and lithium extraction initiatives through partnerships with European companies.
The Carpathian oil and gas basin is one of the oldest in Europe. Despite its long history of development, many fields retain significant potential for renewed exploration using modern technologies. Amid war and energy shortages, Ukraine is seeking to attract international investors to restore oil and gas production in the western part of the country.
For Pennpetro, this deal could mark its first step toward expanding its asset portfolio in Eastern Europe and a key milestone in diversifying beyond its operations in the United States.
