Cadogan Petroleum Operational Update

 
TIDMCAD 
 
Cadogan Petroleum Plc 
 
                         ("Cadogan" or the "Company") 
 
                              Operational update 
 
Cadogan Petroleum plc announces that its application to obtain a 20 year 
production licence for the Zagoryanske field has not been approved by the local 
authority of the Poltava Regional Council. The licence application was not 
approved due to the ongoing disagreement between the state and local 
authorities  on the distribution of royalties. The Poltava Regional Council has 
not approved a licence application since January 2016. 
 
This rejection, which follows an earlier request of resubmission due to 
legislative change in the award process, comes three years after the original 
filing. Since then, the original documents submitted have become invalid and 
cannot be resubmitted due to the Company no longer being the licence holder. 
Furthermore, after three years the Company looses its right to apply for the 
licence. 
 
Cadogan has reviewed the available options and decided it is not in the 
Company's interest to challenge this rejection or re-submit the same 
application again. The Company retains the option of submitting a new 
application in the future and/or of participating in an auction. Cadogan also 
maintains the ownership of the wells, which could be rented to a new licence 
owner, if the licences are awarded in the interim. 
 
Guido Michelotti, CEO, commented: 
 
"We wrote down the value of the asset in 2013 and this news has no impact on 
the Company's balance sheet. Though the news is frustrating, our focus remains 
on delivering value from the Company's producing licences and other reserves 
potential in Ukraine, while also continuing with our wider strategy to reload 
the asset portfolio across different geographies". 
 
ENDS 
 
For further information, please contact: 
 
Cadogan Petroleum Plc 
 
Guido Michelotti , Chief Executive Officer             [phone] 
 
Ben Harber, Company Secretary                          [phone] 
 
Cantor Fitzgerald Europe                                       [phone] 
7000 
 
David Porter 
 
Sarah Wharry 
 
 
 
END 
 

(END) Dow Jones Newswires

April 19, 2017 11:08 ET (15:08 GMT)