(Alliance News) - Shares in Cadogan Petroleum PLC fell Tuesday as the company said authorities have been unable to approve a production licence in Ukraine.
The stock was down 8.9% on Tuesday afternoon at a price of 5.01 pence a share.
Kiev-based Cadogan said the Ukraine regulator has, for "temporary internal procedural reasons", not been able to give final approval for the 20-year licence at Monastyretska.
The company, which said the licence expired on Monday night, had already secured intermediate approvals.
"In the intervening period, the company has started preparing the field and the wells for a temporary suspension of its production operations, which cannot continue without a valid permit," said Cadogan.
"Suspension is not expected to last long and the company is ready to resume production as soon as the licence is awarded."
Monastyretska is based in the Lviv region in the west of Ukraine. The licence is part of the Carpathian fold belt, said Cadogan, and is surrounded by long-standing oil production regions.
By George Collard; georgecollard@alliancenews.com
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Cadogan (CAD)