15 May 2018 |
This announcement is deemed to contain Inside
Information as defined under the Market Abuse Regulations n.
596/2014 |
Cadogan Petroleum
Plc
(“Cadogan” or the
“Company”)
Delayed approval of the
application to renew Cheremkhivsko-Strupkivske (Cher)
license
Cadogan Petroleum plc (“Cadogan”), an independent, oil & gas
company listed on the London Stock Exchange, announces that it has
been notified by the license holder Westgasinvest LLC (“WGI”) that
the application to renew Cheremkhivsko-Strupkivske (“Cher”)
production license has not been awarded by the State Geological
Service of Ukraine (“SGS”) within
the expiry date of 14 May 2018.
WGI believes that SGS has not acted in line with the current
legislation and is evaluating all possible options including filing
an appeal in an administrative Ukrainian court. In the mean while
it has asked the Production Operator, a wholly owned subsidiary of
Cadogan, to halt production operations and put the facilities in
preservation mode, ready to be re-started upon receiving the
renewal of the license.
The impact on Cadogan of the shut-down of Cher is a loss of
production of about 15 boepd (net to Cadogan)
Commenting, Guido Michelotti, CEO of Cadogan, said:
“The delayed approval of the application to renew
Cher license will have a limited impact on Cadogan’s p/l
given the marginal production volume involved and the current
severe taxation regime.
-ENDS-
About
Cadogan is an independent oil and gas company which operates
exploration and production licenses in Western Ukraine, conducts gas trading
operations, and provides services to E&P companies.
Westgasinvest (“WGI”), a company participated by Eni
Ukraine Holdings BV, 50.01%, NJSC “Nadra Ukrayny”, 34.99%, and
Cadogan Ukraine Holdings Limited 15%., is the license holder of
Cheremkhivsko-Strupkivske license.
Cheremkhivsko-Strupkivske (“Cher”) license was awarded in 2002
to NJSC “Nadra Ukrayny”’s subsidiary SE “Zahidukrgeologia“ and
transferred to WGI in 2012 within the context of the Eni-operated
shale gas project. A subsidiary of Cadogan owns a 54.2% interest in
the license.
For further information, please
contact:
Cadogan Petroleum plc |
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Guido Michelotti |
Chief Executive Officer |
+380 (44) 594 5870 |
Ben Harber |
Company Secretary |
+44 0207 264 4366 |
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|
|
Cantor Fitzgerald Europe |
|
|
David Porter/Nick Tullock |
|
+44 (0) 20 7894 7000 |