Cadogan Regulatory News (CAD)

14 Aug 2008 07:07



August 14 2008

CADOGAN PETROLEUM PLC

("Cadogan" or "the Company")

RELATED ANNOUNCEMENT

Cadogan is pleased to note an announcement, copied below, by the European Bank for Reconstruction and Development ("EBRD"), expressing support for the Company over the current issues surrounding its Pirkovskoe and Zagoryanska licences. The EBRD is the largest single investor in central and eastern Europe, investing mainly in private enterprises and using its close relationship with governments in the region to promote policies that will bolster the business environment. EBRD is a significant shareholder in Cadogan, holding an interest of 5.03% (11,632,866 shares).

Cadogan Petroleum successfully appeals over licences cancellation in Ukraine

In February 2007, the European Bank for Reconstruction and Development acquired a stake in Cadogan Petroleum, a public limited company incorporated in the United Kingdom and involved in the exploration and development of a number of gas fields in Poltava region of Ukraine. 

On 17June 2008 the Poltava Region Commercial Court made a ruling that could indirectly lead to the cancellation of Cadogan Petroleum's exploration licenses in the Pirkovskoe and Zagoryanska gas fields..The EBRD as well as other shareholders of the company are very concerned that neither Cadogan nor affiliated parties were informed about the court procedures and received no ruling from any relevant authority.

The European Bank informed the Ukrainian Prime Minister about this situation in its letter dated 7 August 2008. 

The European Bank is pleased to note that on 13 August 2008, the Kharkiv Appellate Administrative Court in Ukraine ruled in favour of Cadogan, allowing its application to appeal against the Poltava Region Commercial Court earlier decision and suspending it pending the resolution of the appeal.

The next decision of the Kharkiv Appellate Administrative Court regarding the Zagoryanska license is expected to be taken on 20 August 2008.

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