(Alliance News) - Cadogan Petroleum PLC said Tuesday it sold Ukraine-based subsidiary Gazvydobuvannya LLC for USD2.8 million to Ukrinvest Group.
Gazvydobuvannya is one of two subsidiaries located in east Ukraine which holds neither physical assets or licences. Cadogan is currently looking to sell both of these units.
"The sale of Gazvydobuvannya LLC is part of Cadogan's goal of building a platform for growth in Ukraine through the prudent use of its cash resources and the monetization of its legacy assets," Cadogan Chief Executive Officer Guido Michelotti said.
"The first step of our production growth was delivered through the re-entry of old wells, requiring minimal capital deployment. The second step has been achieved by the success of well Blazh 10, a substantial portion of which will be self-financed through the sale of this company", Michelotti added.
Shares in Cadogan closed 6.7% higher at 6.00 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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Cadogan (CAD)