Cadogan Regulatory News (CAD)

2 Jul 2009 14:53



Cadogan Petroleum plc

("Cadogan" or "the Company")

Update on Licence Issues

As previously reported, during 2008 Cadogan was faced with indirect legal challenges to its Zagoryanska and Pirkovskoe licences. Following various court hearings, the Company, supported by the Prosecutor General of Ukraine, lodged an appeal to the Supreme Court of Ukraine (the Supreme Court) on the Pirkovskoe licence and an initial hearing took place on 2 June 2009. The case was adjourned to the 16 June 2009, when the Supreme Court heard the case. The Company has now received written confirmation of the result of this hearing.

The Supreme Court upheld the claim made by the Prosecutor General and the Company and cancelled the ruling of the Higher Administrative Court of Ukraine (the Administrative Court) dated 25 February 2009. In this earlier ruling the Administrative Court had overturned the Company's successful appeal on 29 September 2008 relating to the Pirkovskoe license challenge initiated as a result of the dispute between Nadra Ukryainy (Nadra) and Poltavnaftogazgeologiya (PNGG) in relation to the transfer of the license from PNGG to Nadra in June 2007. The Administrative Court proceedings on 25 February 2009 had resolved to cancel the resolution of the Kharkiv Appellate Administrative Court dated 29 September 2008 and upheld the resolution of the Poltava Regional Commercial Court of 12 June 2008.

The Supreme Court has as a consequence of this ruling instructed the Administrative Court to reconsider their earlier ruling. The Company has not as yet been advised of the date of this hearing. The Supreme Court hearing on the Zagoryanska licence is expected to be heard at the end of July.

As announced by the Company on 26 February 2009 the court proceedings to date on the licence issues are not concerned with the legal title of the license held by Cadogan. The position of Cadogan in the court proceedings was fully supported by the Ministry of Environmental Protection of Ukraine and the Prosecutor General of Ukraine. The Company has obtained new and independent advice from a leading Ukrainian law firm that has not previously been involved in the case. Cadogan has been advised that new legal proceedings would need to be brought against Cadogan, and would need to succeed, before the Company's interests in its licences would be affected.

2 July 2009

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