Last checked at 15 Oct 2009 15:56
15 October 2009
Cadogan Petroleum PLC
("Cadogan" or the "Company")
GPS Settlement Agreement
Cadogan announces that it has resolved the disputes that existed between the Company and Global Process Systems LLC ("GPS") concerning contracts for the fabrication and delivery of two gas treatment plants for a total purchase price of US$54.5 million. The key commercial terms of the settlement provide for GPS exclusively to market the plants for a 10 month period and, if a sale is achieved, for Cadogan to receive in stage payments an aggregate cash consideration of US$38.5 million. If the plants are not sold within this period, then GPS has agreed to take the plants to stock and Cadogan will receive in stage payments an aggregate cash consideration of US$37.5 million. The settlement also provides for the release by GPS of a US$11 million contractual claim against Cadogan for what would otherwise have been the balance of the consideration for the plants. Cadogan continues to pursue claims against all the other parties to the litigation, commenced by Cadogan in London, which has been the subject of previous announcements by the Company.
Enquiries:
| Cadogan Petroleum | +44 20 7245 0801 |
| Ian Baron Stefan Bort | |
| Pelham PR | |
| James Henderson | +44 20 7337 1501 |
| Evgeniy Chuikov | +44 20 7337 1513 |
| Phillip Dennis | +44 20 7337 1516 |