AGM Statement

 

TIDMCAD 
 
RNS Number : 5365O 
Cadogan Petroleum PLC 
30 June 2010 
 

 
Wednesday 30 June 2010 
 
                              CADOGAN PETROLEUM PLC 
 
                                  AGM STATEMENT 
 
 
At the Annual General Meeting of the Company held today (30 June 2010), Chairman 
Simon Duffy made the following statement: 
 
 
"Before commencing the meeting I would like to give a brief update on our 
operations in Ukraine. 
Since forming our own in-house technical team in 2009, a great deal of progress 
has been made in the technical understanding of our licenses. 
In west Ukraine a drilling program is well advanced with the objective of 
increasing production from the Debeslavetska Field through three new wells. This 
field was recently shut in whilst an assertion of non-compliance was 
investigated by the authorities. On 25th June 2010, the Company received a 
letter from the Ministry of Environment of Ukraine acknowledging that the 
alleged non-compliance had been resolved and that as soon as an 
inter-departmental committee was formed, the lifting of the suspension order 
would be submitted for approval.  Prior to the shut in, net revenues from the 
field averaged $137,000. The Board believes that lost production from this well 
will be recovered during the year. Recently we received confirmation from the 
Ministry that the Monastreyetska license would be extended by a further 5 years. 
Production will re-commence from the Blazivska-1 well on this licence as soon as 
practical. 
In east Ukraine, testing of the Zagoranska - 3 well was completed and the well 
is currently being tied into production facilities. The well will initially be 
put on stream at about 50,000 cubic meters of gas and will be produced into the 
trunk line for sales. The well will also produce about 140 barrels per day of 
liquids (condensates) which will be sold into the local market. Production is 
expected to commence on August 1st. Plans are also underway to deepen the 
Pokrovska-1 well by about 800 meters to test a structure at the Lower Visean 
level that has been identified on 3D seismic. Renewal of the Pirkovska licence 
is also awaiting approval from the aforementioned inter-departmental committee. 
 
 The program to farm-out an interest in four of our licenses is on-going 
with several companies actively evaluating the technical data. In view of the 
discovery at Zagoranska - 3 and contingent on the results of the Pokrovska - 1 
well, the farm-out of these two licenses will be re-assessed. 
The Company's litigation against its former officers and various related parties 
continues.  The trial is set for February 2011, at the High Court in London. 
While clearly it would be inappropriate for me to comment in any detail on the 
complex facts and issues in the litigation, the Company continues to be advised 
that it has excellent prospects of success. 
In the meantime, and just as importantly, the litigation has already secured 
approximately US$16,000,000 in value for the Company, in a combination of cash 
already received and obligations released. 
Secondly, under the settlement with the GPS parties, the Company expects to 
receive a further US$37.5 million in connection with the resale of the gas 
plants manufactured by GPS. 
It is worth pointing out that none of this would have been secured without the 
litigation initiative and we believe that the GBP6.1 million shown in the 2009 
accounts will cover the cost of the litigation to a successful conclusion. 
 
I would like to inform you that as a result of the change in substantial 
shareholder announced last week resolutions 3, 4, 5 and 6 as set out in the 
Notice of Meeting have been withdrawn." 
 
 
 
Enquiries 
+-------------------------------------+----------------------+ 
|                                     |                      | 
+-------------------------------------+----------------------+ 
|                                     |                      | 
+-------------------------------------+----------------------+ 
| Cadogan Petroleum plc               | [phone]     | 
+-------------------------------------+----------------------+ 
| Ian Baron, Chief Executive Officer  |                      | 
+-------------------------------------+----------------------+ 
| Stefan Bort, Company Secretary      |                      | 
+-------------------------------------+----------------------+ 
 
+------------------------+------------------+ 
| Bankside               | [phone] | 
+------------------------+------------------+ 
| Simon Rothschild       |                  | 
+------------------------+------------------+ 
| Rose Oddy              |                  | 
+------------------------+------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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