Resolution of Licence Issues

 

TIDMCAD 
 
RNS Number : 7999S 
Cadogan Petroleum PLC 
16 September 2010 
 

RNS 
                              Cadogan Petroleum plc 
                          Resolution of licence issues 
Further to the recent announcement regarding the agreement on the resolution of 
the indirect challenge to the Company's Pirkovskoe and Zagoryanska licences, the 
Board is pleased to report that the Company has been advised by the State 
Geological Service - Interdepartmental Work Group on subsurface use, which is 
part of the Ministry of Environmental Protection of Ukraine, that it has 
resolved that the following matters should be submitted to the Minister for 
final approval. 
1.    The approval of the change to the work programme at Pokrovskoe 1 
2.    The lifting of the suspension of the Debeslavtska field 
3.    The removal of the suspension on the Slobodo Rungarske field 
4.    The extension of the Pirkovskoe licence to June 2015 
5.    The amendment of the work programme at Zagoryanska 
These resolutions will permit the previously announced deepening of the 
Pokrovskoe 1 well to commence and test a structural target identified on 
recently reprocessed seismic data. At Debeslavtska they will allow production 
from existing wells to recommence and the drilling of a series of three new 
shallow production wells. The Board remains confident that the lost production 
from this field due to the suspension can be recovered. At Slobodo Rungarske the 
abandonment of several non-commercial oil wells is underway and the deeper 
potential is currently under evaluation.  At Pirkovskoe 1, minor oil production 
can resume and allow the Company to continue its evaluation of the Pirkovskoe 1 
well.Reserves attached to the Pirkrovskoe licence, as at 31 December 2009, are 
2.4 mmboe of proved and probable reserves, 5.0 mmboe of possible reserves and 
134.0 mmboe of contingent resource. The licence area is adjacent to the 
Zagoryanska licence where the Lower Visean interval is producing successfully at 
Zagoryanska 3. 
Monastryeksa Licence 
The Board also announces that the Monastryeksa licence has been extended to 
December 2014.  This licence contains the Blazivska field which was previously 
under the Company's operatorship and had been producing small amounts of oil. 
The terms of the extension will allow production to recommence shortly in 
parallel with an evaluation program to establish a plan to increase production. 
Commenting on these developments, Ian Baron, Chief Executive Officer, said "The 
resolution of our licence issues clearly indicates the improving operational 
climate for Cadogan in Ukraine. It also highlights the progress that the Company 
has made over the last 12 months in evaluating and developing economically 
successful projects to increase value for shareholders." 
Enquiries 
+-----------------------------------------+------------------------+ 
| Cadogan Petroleum plc                   | [phone]       | 
+-----------------------------------------+------------------------+ 
| Ian Baron, Chief Executive Officer      |                        | 
+-----------------------------------------+------------------------+ 
| Stefan Bort, Company Secretary          |                        | 
+-----------------------------------------+------------------------+ 
 
+------------------------+------------------+ 
| Bankside               | [phone] | 
+------------------------+------------------+ 
| Simon Rothschild       |                  | 
+------------------------+------------------+ 
| Rose Oddy              |                  | 
+------------------------+------------------+ 
 
Ends. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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