Cadogan Petroleum JV Partner In Share Purchase Pact With Eni

LONDON--Cadogan Petroleum PLC (CAD.LN), confirmed Monday that, together with its joint venture partner Ukrainian state-owned National Joint Stock Company Nak Nadra Ukrayny, it has entered into a Share Purchase Agreement with Eni S.p.A, whereby Eni has acquired a stake in the joint venture established by Nadra and Cadogan, Ukrainian company LLC Westgasinvest.

MAIN FACTS:

-Under the transaction, Eni will acquire 50.01% of LLC Westgasinvest from the joint venture parties and will fund an initial exploration program. Cadogan had already transferred ownership of its two west Ukraine licenses, Debeslavetska and Cheremkhivska to the joint venture. Following the conclusion of the transaction Cadogan will retain ownership of 15% of LLC Westgasinvest.

-This Agreement was developed within the framework of the Cooperation Agreement with Eni, signed in 2011.

-The transaction remains conditional on achieving certain conditions precedent including Ukraine anti monopoly clearance over the next 90 days.

-Cadogan remains the operator for its existing conventional activities at Debeslavetska and Cheremkhivska and will keep the economic benefit from the conventional activities on these two licenses.

-Cadogan Petroleum shares at 0850 GMT flat at 33 pence, valuing the company at GBP76.3 million.

-Write to Razak Musah Baba at [e-mail]