Business
Exit from the shale gas project in Ukraine
Exit from the shale gas project in Ukraine.
About this update from Cadogan Energy Solutions Plc
[{"type":"text","content":"\n \n\n\nPress Release 12 November 2018\n\n\n\nThis announcement is deemed to contain Inside Information as defined under theMarket Abuse Regulations n. 596/2014\n\n\n\nCadogan Petroleum Plc.\n\n(“Cadogan†or the “Companyâ€)\n\nExit from the shale gas project in Ukraine\n\nCadogan Petroleum plc. (“Cadoganâ€), an independent, diversified, oil & gas company listed on the London Stock Exchange, announces it has reached an agreement with Eni and PJSC “National Joint Stock Company “Nadra Ukrayny†(“Nadra Ukraynyâ€) on the terms and conditions of Eni’s exit from Westgasinvest LLC (WGI).\n\nUnder the terms of the agreement, Cadogan will receive consideration of $1.715 million from Eni and will commit: (i) not to exercise its pre-emptive rights on Eni’s transfer of its WGI’s shares to Nadra Ukrayny, (ii) to transfer its own shares in WGI to Nadra Ukrayny for a nominal consideration and (iii) to transfer its shares in the company operating the Debeslavetska and Cheremkhivsko-Strupkivska gas licences to WGI, also for a nominal consideration.\n\nThe value of Cadogan’s participation in WGI’s shale gas licences has previously been impaired. The value of the Debeslavetska and Cheremkhivsko-Strupkivska’s producing assets has also been almost entirely depreciated in previous years. The impact of the transfers on Cadogan’s balance sheet is as such negligible.\n\nCurrent production from Debeslavetska is 58 boepd (net to Cadogan) with 2P/3P reserves at June 30, 2018 of 47/147 Kboe. Production operations at Cheremkhivsko-Strupkivska remain suspended, pending WGI receiving the renewal of the expired production licence. \n\nThe agreement is subject to a number of customary approvals, includi...