Cadogan Petroleum Proger Update

 
TIDMCAD 
 
Press Release 
 
29 July 2019 
 
This announcement is deemed to contain Inside Information as defined under the 
Market Abuse Regulations n. 596/2014 
 
                             Cadogan Petroleum Plc 
 
                         ("Cadogan" or the "Company") 
 
                      Proger's financial results for 2018 
 
Cadogan Petroleum plc ("Cadogan"), an independent, diversified oil & gas 
company listed on the main market of the London Stock Exchange is pleased to 
report that Proger's 2018 full year financial results confirm strong growth. 
EBITDA saw a 24% year-on-year increase, to EUR11.3 million and pre-tax profit 
increased to EUR6.1 million, a nearly 4% year-on-year increase, notwithstanding a 
EUR1.5 million of contributions to reserves. 
 
Cadogan provided Proger's parent company with a EUR13.4m loan in February 2019 to 
subscribe a capital increase in Proger. Proger is an international, Rome based, 
engineering company which offers services in a range of fields, including oil & 
gas. The agreement also provided an option to convert the loan into an 
anticipated indirect 22% equity interest in Proger, via a capital increase. 
 The option offers Cadogan's shareholders exposure to Proger's growth, in 
addition to income, synergies and diversification, in-line with Cadogan's 
strategy. 
 
Following the capital increase taking place, Cadogan's indirect interest in 
Proger is now anticipated to increase to ca. 25% and the 2018 financial results 
would increase the value of Cadogan's indirect participating interest, should 
the Company's shareholders approve the exercise of the conversion option. 
 
The loan, which was executed in February 2019, carries an interest of 5.5% per 
year. The funds from the loan are being used by Proger to finance their 
business plan, which is targeting a material increase in EBITDA over the next 5 
years. 
 
Proger's financial results for 2018 were approved by its shareholders on July 
26, having first been audited by Ernst & Young. The results will now be filed 
at the Italian Chamber of Commerce and Industry, from where they can be 
downloaded. 
 
Guido Michelotti, Cadogan Petroleum CEO, commented: 
 
"Proger's 2018 results confirm that the convertible loan agreement offers 
exposure to realizable growth at a balanced level of risk to Cadogan 
shareholders; it also diversifies Cadogan's portfolio, which is a key pillar of 
our strategy. We look forward to a positive 2019, with Proger delivering on its 
business plan, using the financial resources made available to them at the 
beginning of this year". 
 
About 
Cadogan is an independent, diversified oil and gas company, which operates 
exploration and production licenses in Western Ukraine, conducts gas trading 
operations, and provides services to E&P companies. 
 
Proger is a Rome-based, international company that offers state of the art 
engineering and management expertise in a broad range of fields, spanning from 
oil & gas, to renewable energy, infrastructure and security. Proger has amongst 
its shareholders SIMEST, the company of the Cassa Depositi e Prestiti Group 
that specializes in supporting Italian companies which want to grow on the 
global market. 
 
The convertible loan agreement was executed in February this year, has a 
principal of EUR13,385,000, is secured and carries an interest of 5.5% per year, 
payable at maturity (which is 24 months after the execution date). The loan 
also carries a call option to convert, at Cadogan's sole discretion, the 
principal into an indirect  interest in Proger; the call option can be 
exercised at any time between the 6th and  24th months following the execution 
date of the loan agreement and subject to Cadogan shareholders approving the 
exercise of the call. The obligation to pay interest is extinguished if the 
call option is exercised. For more information on the convertible loan go to 
http://otp.investis.com/clients/uk/cadogan-petroleum/rns/regulatory- 
story.aspx?cid=46&newsid=1236020. 
 
For further information, please contact: 
 
Cadogan Petroleum plc 
 
Guido Michelotti    Chief Executive Officer           [phone] 
Ben Harber      Company Secretary             [phone] 
 
Cantor Fitzgerald Europe      Broker to Cadogan Petroleum plc 
 
David Porter           [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

July 29, 2019 10:17 ET (14:17 GMT)