Eni strategic alliance (7902E)
April 13 2011 - 1:00AM
UK Regulatory
TIDMCAD TIDM0N9S
RNS Number : 7902E
Cadogan Petroleum PLC
13 April 2011
Cadogan Petroleum plc ("Cadogan") ("the Company")
Eni transaction on two licences in eastern Ukraine &
strategic alliance
Cadogan is pleased to announce that it has reached agreement
with Eni S.p.A ("Eni"), the major Italian integrated energy
company, for the acquisition of an interest in the Company's
Pokrovskoe and Zagoryanska licences in the east of Ukraine.
Eni will initially acquire a 30% interest in the Pokrovskoe
licence, with the option to acquire a further 30% interest in the
future. Eni will also acquire a 60% interest in the Zagoryanska
licence. The initial consideration will comprise 100% funding of a
work programme of approximately $30 million (excluding VAT),
including drilling and seismic re-processing, plus a $38 million
payment. Subject to successful results from the above programmes
and award of production licences, Eni will pay the Company further
amounts of up to $90 million.
The transaction, which is a class one transaction under the UKLA
Listing Rules, is subject to Cadogan shareholder and Ukrainian
Anti-Monopoly Commission approval. The Company plans to issue a
circular to shareholders in May 2011, giving full details of the
proposed transaction and convening a general meeting of the Company
prior to mid June 2011. Other Conditions Precedent to completion of
the deal include satisfactory conclusion of an internal
re-structuring within the Company, no material adverse effects
between signature of the agreement and completion and all
representations and warranties of the Company and Eni being true at
completion. It is planned that the transaction will complete on or
around 30 June 2011.
The $30 million work programme on Pokrovska will be used to
fulfil the work obligations on the licence and will test the
potential of the Upper and Lower Visean intervals which had strong
indications of hydrocarbons in wells on the license. The cash
proceeds arising from the transaction will be applied to finance
any future Zagoryanska work programmes and fund development of the
Company's other assets. Additional future cash proceeds from
successful operational results and the award of production licences
will further strengthen the Company's financial position, enabling
it to finance its share of future development activities and to
invest in new business opportunities.
Commenting on the proposed transaction Simon Duffy, Chairman,
stated "The announcement of this major transaction signifies a
turning point for Cadogan. With Eni as a strategic partner, the
Company can more rapidly develop the potential in these licences
and can embark on other significant oil & gas opportunities
that are present in Ukraine".
Ian Baron, Chief Executive Officer commented "The investment by
Eni in two of our Ukrainian assets vindicates the Board's view, not
only of the value of these particular assets, but also the scale
and substance of the opportunity in the country. We strongly
believe that Ukraine offers significant opportunity for Cadogan and
Eni, which we can develop through combining the expertise of
Cadogan's staff with the resources of a major oil company."
Ends
Enquiries
Cadogan Petroleum Plc + 44 20 7487 8301
================================= ==================
Ian Baron, CEO
Gordon Stein, CFO
Stefan Bort, Company Secretary
================================= ==================
Matrix +44 20 3206 7000
================================= ==================
Robin Henshall
================================= ==================
James Pope
================================= ==================
Bankside Consultants +44 20 7367 8888
================================= ==================
Simon Rothschild
================================= ==================
Notes to editors
1. Cadogan Petroleum plc was listed on the main market of the
London Stock Exchange in June 2008. It has a number of onshore oil
and gas assets in both the east and west of Ukraine which it
develops from its operational headquarters in Kiev. The Company,
which is an independent exploration, development and production
company, currently employs 120 staff, the majority of whom are
based in Ukraine.
2. Eni S.p. A is a major integrated energy company, committed to
growth in the activities of finding, producing, transporting,
transforming and marketing oil and gas. In 2010, Eni reported net
profit of EUR6.32 billion. Adjusted net profit was EUR6.87 billion,
up 32% from a year ago driven by an excellent performance reported
by the Exploration & Production Division. Eni is listed both on
the Italian Stock Exchange and on the New York Stock Exchange.
3. The Pokrovskoe licence area covers 49.5 square kilometres and
is located in the Dnieper-Donets basin. The licence is
approximately 10 kilometers from the UkrTransGas system. The Group
has a 100% working interest in the licence which holds 51.06 mmboe
of prospective Resources. The exploration and development licence
runs to August 2011 and negotiations have commenced to extend
it.
4. The Zagoryanska licence area covers 49.6 square kilometres
and is located in the Dnieper-Donets basin. The Group has a 90%
working interest in the licence which holds 96.4 mmboe of
Contingent Resources. The exploration and development licence runs
to August 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
SALEASLAFSPFEFF
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From Jul 2023 to Jul 2024