Cadogan Petroleum Operational Update
20 April 2017 - 1:08AM
UK Regulatory
TIDMCAD
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
END
(END) Dow Jones Newswires
April 19, 2017 11:08 ET (15:08 GMT)
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