Licence Update

 

TIDMCAD 
 
RNS Number : 9678N 
Cadogan Petroleum PLC 
26 February 2009 
 

26 February 2009 
 
 
Cadogan Petroleum plc 
("Cadogan" or the "Company") 
 
 
Licence Update 
 
 
Cadogan today provides an update regarding its Pirkovskoe special permit 
("Licence"). 
 
 
On 25 February 2009, a hearing of the Higher Administrative Court of Ukraine 
(the "Court") took place regarding the Company's successful appeal on 29 
September 2008 related to the Pirkovskoe license challenge initiated as a result 
of the dispute between Nadra Ukryainy (Nadra) and Poltavnaftogazgeologiya (PNGG) 
in relation to the transfer of the license from PNGG to Nadra in June 2007 (see 
note below). 
 
 
Further to the court proceedings on 25 February, the Court verbally resolved 
(the "Resolution") to cancel the resolution of the Kharkiv Appellate 
Administrative Court dated 29 September 2008 and upheld the resolution of the 
Poltava Regional Commercial Court of 12 June 2008. The written text of the said 
Resolution, including further details as to the basis of the decision, will be 
delivered by the Court during March 2009. 
 
 
The court proceedings held on 25 February 2009 were not concerned with the 
legitimacy of the license held by Cadogan and the company continues to carry out 
appraisal and development on the Pirkovskoe gas field as the legitimate owner of 
the license. Cadogan has been advised that new legal proceedings would need to 
be brought against Cadogan and would need to succeed before Cadogan's interests 
in its licences would be affected. The position of Cadogan in the court 
proceedings was fully supported by the Ministry of Environmental Protection of 
Ukraine and the General Prosecutor Office, 
 
 
The Company is continuing to investigate the situation as a matter of utmost 
importance in conjunction with its legal advisers. 
 
 
Note: Legal Dispute History 
 
 
On 17 June 2008, the Poltava Court made a written ruling, following a hearing on 
12 June 2008, in favour of PNGG, a subsidiary of the Group's joint venture 
partner Nadra, a state owned company, in relation to an earlier licence held by 
PNGG, relating to the Pirkovskoe field. The Poltava Court ruling: (a) declared 
as invalid the licences re-registered to Nadra (these were subsequently 
re-registered to the Group); and (b) recognised as valid the earlier licences 
held by PNGG. 
Cadogan submitted appeals against the 17 June 2008 decision of the Poltava Court 
to the Kharkiv Court and the hearings took place on 13 August 2008 in respect of 
Pirkovskoe. The Kharkiv Court ruled in favour of Cadogan, allowing its 
application to appeal against the Poltava Court. 
 
 
On 29 September 2008 the Kharkiv Administrative Court of Appeal ("Kharkiv 
Court") granted the appeal filed by Cadogan in full and cancelled the written 
rulings of the Poltava Regional Commercial Court ("Poltava Court") of 17 June 
2008. 
 
 
 
 
 
 
Enquiries: 
 
 
+------------------------------------+-----------------------------------+ 
| Cadogan Petroleum                  | [phone]                  | 
+------------------------------------+-----------------------------------+ 
| Mark Tolley                        |                                   | 
+------------------------------------+-----------------------------------+ 
| Peter Biddlestone                  |                                   | 
+------------------------------------+-----------------------------------+ 
| Pelham PR                          |                                   | 
+------------------------------------+-----------------------------------+ 
| James Henderson                    | [phone]                  | 
+------------------------------------+-----------------------------------+ 
|                                    |                                   | 
+------------------------------------+-----------------------------------+ 
| Evgeniy Chuikov                    | [phone]                  | 
|                                    |                                   | 
+------------------------------------+-----------------------------------+ 
| Philip Denis                       | [phone]                  | 
+------------------------------------+-----------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCUNONRKARUUAR