Cadogan Petroleum Operational Update

 
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the suspension had subsequently been revoked and the licence reached its 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                   [phone] 
 
Guido Michelotti, Chief Executive 
Officer 
Marta Halabala, Company Secretary 
 
Cantor Fitzgerald Europe                [phone] 
 
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)