AGM Statement
June 30 2010 - 8:00AM
UK Regulatory
TIDMCAD
RNS Number : 5365O
Cadogan Petroleum PLC
30 June 2010
Wednesday 30 June 2010
CADOGAN PETROLEUM PLC
AGM STATEMENT
At the Annual General Meeting of the Company held today (30 June 2010), Chairman
Simon Duffy made the following statement:
"Before commencing the meeting I would like to give a brief update on our
operations in Ukraine.
Since forming our own in-house technical team in 2009, a great deal of progress
has been made in the technical understanding of our licenses.
In west Ukraine a drilling program is well advanced with the objective of
increasing production from the Debeslavetska Field through three new wells. This
field was recently shut in whilst an assertion of non-compliance was
investigated by the authorities. On 25th June 2010, the Company received a
letter from the Ministry of Environment of Ukraine acknowledging that the
alleged non-compliance had been resolved and that as soon as an
inter-departmental committee was formed, the lifting of the suspension order
would be submitted for approval. Prior to the shut in, net revenues from the
field averaged $137,000. The Board believes that lost production from this well
will be recovered during the year. Recently we received confirmation from the
Ministry that the Monastreyetska license would be extended by a further 5 years.
Production will re-commence from the Blazivska-1 well on this licence as soon as
practical.
In east Ukraine, testing of the Zagoranska - 3 well was completed and the well
is currently being tied into production facilities. The well will initially be
put on stream at about 50,000 cubic meters of gas and will be produced into the
trunk line for sales. The well will also produce about 140 barrels per day of
liquids (condensates) which will be sold into the local market. Production is
expected to commence on August 1st. Plans are also underway to deepen the
Pokrovska-1 well by about 800 meters to test a structure at the Lower Visean
level that has been identified on 3D seismic. Renewal of the Pirkovska licence
is also awaiting approval from the aforementioned inter-departmental committee.
The program to farm-out an interest in four of our licenses is on-going
with several companies actively evaluating the technical data. In view of the
discovery at Zagoranska - 3 and contingent on the results of the Pokrovska - 1
well, the farm-out of these two licenses will be re-assessed.
The Company's litigation against its former officers and various related parties
continues. The trial is set for February 2011, at the High Court in London.
While clearly it would be inappropriate for me to comment in any detail on the
complex facts and issues in the litigation, the Company continues to be advised
that it has excellent prospects of success.
In the meantime, and just as importantly, the litigation has already secured
approximately US$16,000,000 in value for the Company, in a combination of cash
already received and obligations released.
Secondly, under the settlement with the GPS parties, the Company expects to
receive a further US$37.5 million in connection with the resale of the gas
plants manufactured by GPS.
It is worth pointing out that none of this would have been secured without the
litigation initiative and we believe that the GBP6.1 million shown in the 2009
accounts will cover the cost of the litigation to a successful conclusion.
I would like to inform you that as a result of the change in substantial
shareholder announced last week resolutions 3, 4, 5 and 6 as set out in the
Notice of Meeting have been withdrawn."
Enquiries
+-------------------------------------+----------------------+
| | |
+-------------------------------------+----------------------+
| | |
+-------------------------------------+----------------------+
| Cadogan Petroleum plc | +44 20 7245 0801 |
+-------------------------------------+----------------------+
| Ian Baron, Chief Executive Officer | |
+-------------------------------------+----------------------+
| Stefan Bort, Company Secretary | |
+-------------------------------------+----------------------+
+------------------------+------------------+
| Bankside | +44 20 7367 8888 |
+------------------------+------------------+
| Simon Rothschild | |
+------------------------+------------------+
| Rose Oddy | |
+------------------------+------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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