REG-Cadogan Petroleum: Operational Update <Origin Href="QuoteRef">CADP.L</Origin>

Cadogan Energy SolutionsAnnouncement

19/04/2017 16:10

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                    



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