Cadogan Petroleum Operational Update
20 May 2016 - 11:40PM
UK Regulatory
TIDMCAD
CADOGAN PETROLEUM PLC
Operational update
20 May 2016
Cadogan Petroleum plc ("Cadogan" or the "Company"), an independent oil and gas
exploration, development and production company with onshore gas, condensate
and oil assets in Ukraine, announces its decision not to apply for the award of
a new exploration licence for the Sloboda-Rungurska licence ("Sloboda") in
Ukraine. The Sloboda licence had been suspended last year for alleged breaches;
the suspension had subsequently been revoked and the licence reached its
natural expiry date last month. The current energy price environment combined
with a subsoil use tax (a tax on production at the well head) set at 45% for
oil, has resulted in the remaining exploration potential becoming economically
unviable. The decision not to apply for a new licence has no impact on the
Company's balance sheet, as all assets had already been impaired at 31 December
2015.
In conjunction with this decision, Cadogan has commenced a revision of its
current logistic, organization and staffing level in the west of Ukraine in
order to align them to the new scope of activity and maintain the highest
possible level of efficiency.
Guido Michelotti, CEO, commented:
"We regret the decision to reduce the size of our Ukrainian portfolio, but we
have to acknowledge that the current administrative and fiscal framework in
Ukraine hinders the exploitation of marginal reserves such as those which might
have been discovered in Sloboda."
Enquiries:
Cadogan Petroleum plc +380 (44) 594 5870
Guido Michelotti, Chief Executive
Officer
Marta Halabala, Company Secretary
Cantor Fitzgerald Europe +44 (0) 20 7894 7000
David Porter
Sarah Wharry
About
Cadogan is an independent oil and gas company. Cadogan operates exploration and
production licenses in Ukraine, conducts gas trading operations, and provides
services to E&P companies.
END
(END) Dow Jones Newswires
May 20, 2016 09:40 ET (13:40 GMT)