Business
Statement re shareholder lett
Statement re shareholder lett.
About this update from Cadogan Energy Solutions Plc
[{"type":"text","content":"\n RNS Number : 9785K Cadogan Petroleum PLC 28 April 2010 \n \n\nAt the request of one of its shareholders, Cadogan Petroleum plc, included a letter from them in its Notice of Meeting for the AGM to be held on 2 June 2010. Weiss Asset Management LP have requested that the Company issue the letter via a RNS as well.\nLetter from Weiss Asset Management LP\n27 April 2010\nDear Fellow Shareholders,\nAs Cadogan's largest shareholder (funds managed by Weiss Asset Management own approximately 25% of its issued and outstanding shares), we write to solicit your support for changes to Cadogan's Board of Directors. At the upcoming AGM we will seek to appoint John Chapman, Eitan Milgram, and Stephen Coe as Non-Executive Directors. Our objective in putting forward these three candidates is to put in place a board that will squarely focus on evaluating and implementing strategies for asset recovery, monetizing assets as appropriate, reducing costs, and returning capital to shareholders. Our sole objective is to maximize Cadogan's value, which will benefit all shareholders.\nAs all shareholders are well aware, Cadogan's performance has been less than stellar. Since the IPO in June of 2008 at the offer price of 230 pence per share, Cadogan's share price has declined over 93% to 15.5 pence per share (as of 19 April 2010).\nAs a consequence of the events of the past two years, Cadogan is no longer a company whose primary value comes from oil and gas exploration and production. Instead, the principal potential means of creating value for shareholders is now wholly dependent on: (i) the successful resolution of the Company's ongoing litigation against former management and suppliers;(ii) the collection of the $37.5 - $38.5 million receivable from Global Process Systems LLC, and; (iii) the realization of value from the Company's assets in Ukraine.\nOf paramount importance now is the need to substantially reduce costs. Administrative expenses, as disclosed in the Company's most recently published public results, totaled £17.132 million for the six-month period ending 30 June 2009. This is excessive given the Company's market capitalization as at 19 April 2009 of £35.82 million. We believe that reduction of costs going forward will be crucial for maximizing value for the Company's shareholders.\nWe believe that new directors should b...