Cadogan Petroleum Proger Update
30 July 2019 - 12:17AM
UK Regulatory
TIDMCAD
Press Release
29 July 2019
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")
Proger's financial results for 2018
Cadogan Petroleum plc ("Cadogan"), an independent, diversified oil & gas
company listed on the main market of the London Stock Exchange is pleased to
report that Proger's 2018 full year financial results confirm strong growth.
EBITDA saw a 24% year-on-year increase, to EUR11.3 million and pre-tax profit
increased to EUR6.1 million, a nearly 4% year-on-year increase, notwithstanding a
EUR1.5 million of contributions to reserves.
Cadogan provided Proger's parent company with a EUR13.4m loan in February 2019 to
subscribe a capital increase in Proger. Proger is an international, Rome based,
engineering company which offers services in a range of fields, including oil &
gas. The agreement also provided an option to convert the loan into an
anticipated indirect 22% equity interest in Proger, via a capital increase.
The option offers Cadogan's shareholders exposure to Proger's growth, in
addition to income, synergies and diversification, in-line with Cadogan's
strategy.
Following the capital increase taking place, Cadogan's indirect interest in
Proger is now anticipated to increase to ca. 25% and the 2018 financial results
would increase the value of Cadogan's indirect participating interest, should
the Company's shareholders approve the exercise of the conversion option.
The loan, which was executed in February 2019, carries an interest of 5.5% per
year. The funds from the loan are being used by Proger to finance their
business plan, which is targeting a material increase in EBITDA over the next 5
years.
Proger's financial results for 2018 were approved by its shareholders on July
26, having first been audited by Ernst & Young. The results will now be filed
at the Italian Chamber of Commerce and Industry, from where they can be
downloaded.
Guido Michelotti, Cadogan Petroleum CEO, commented:
"Proger's 2018 results confirm that the convertible loan agreement offers
exposure to realizable growth at a balanced level of risk to Cadogan
shareholders; it also diversifies Cadogan's portfolio, which is a key pillar of
our strategy. We look forward to a positive 2019, with Proger delivering on its
business plan, using the financial resources made available to them at the
beginning of this year".
About
Cadogan is an independent, diversified oil and gas company, which operates
exploration and production licenses in Western Ukraine, conducts gas trading
operations, and provides services to E&P companies.
Proger is a Rome-based, international company that offers state of the art
engineering and management expertise in a broad range of fields, spanning from
oil & gas, to renewable energy, infrastructure and security. Proger has amongst
its shareholders SIMEST, the company of the Cassa Depositi e Prestiti Group
that specializes in supporting Italian companies which want to grow on the
global market.
The convertible loan agreement was executed in February this year, has a
principal of EUR13,385,000, is secured and carries an interest of 5.5% per year,
payable at maturity (which is 24 months after the execution date). The loan
also carries a call option to convert, at Cadogan's sole discretion, the
principal into an indirect interest in Proger; the call option can be
exercised at any time between the 6th and 24th months following the execution
date of the loan agreement and subject to Cadogan shareholders approving the
exercise of the call. The obligation to pay interest is extinguished if the
call option is exercised. For more information on the convertible loan go to
http://otp.investis.com/clients/uk/cadogan-petroleum/rns/regulatory-
story.aspx?cid=46&newsid=1236020.
For further information, please contact:
Cadogan Petroleum plc
Guido Michelotti Chief Executive Officer +380 (44) 594 5870
Ben Harber Company Secretary +44 0207 264 4366
Cantor Fitzgerald Europe Broker to Cadogan Petroleum plc
David Porter +44 (0) 20 7894 7000
END
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