Cadogan Petroleum
Plc
(“Cadogan” or the
“Company”)
Operational
update
Cadogan Petroleum plc announces that its application to obtain a
20 year production licence for the Zagoryanske field has not been
approved by the local authority of the Poltava Regional Council.
The licence application was not approved due to the ongoing
disagreement between the state and local authorities on the
distribution of royalties. The Poltava Regional Council has not
approved a licence application since January
2016.
This rejection, which follows an earlier request of resubmission
due to legislative change in the award process, comes three years
after the original filing. Since then, the original documents
submitted have become invalid and cannot be resubmitted due to the
Company no longer being the licence holder. Furthermore, after
three years the Company looses its right to apply for the
licence.
Cadogan has reviewed the available options and decided it is not
in the Company’s interest to challenge this rejection or re-submit
the same application again. The Company retains the option of
submitting a new application in the future and/or of participating
in an auction. Cadogan also maintains the ownership of the wells,
which could be rented to a new licence owner, if the licences are
awarded in the interim.
Guido
Michelotti, CEO, commented:
“We wrote down the value of the asset in 2013 and this news has
no impact on the Company’s balance sheet. Though the news is
frustrating, our focus remains on delivering value from the
Company’s producing licences and other reserves potential in
Ukraine, while also continuing
with our wider strategy to reload the asset portfolio across
different geographies”.
ENDS
For further information, please contact:
Cadogan Petroleum
Plc
Guido Michelotti , Chief
Executive
Officer
+380 (44) 594 5870
Ben Harber, Company
Secretary +44
(0) 207 264 4366
Cantor Fitzgerald
Europe
+44 (0) 207 894 7000
David Porter
Sarah
Wharry