Delayed approval of the application to renew

Cadogan Petroleum Plc - Delayed approval of the application to renew

PR Newswire

London, May 15

Cadogan Petroleum Plc

(“Cadogan” or the “Company”)

Delayed approval of the application to renew Cheremkhivsko-Strupkivske (Cher) license

Cadogan Petroleum plc (“Cadogan”), an independent, oil & gas company listed on the London Stock Exchange, announces that it has been notified by the license holder Westgasinvest LLC (“WGI”) that the application to renew Cheremkhivsko-Strupkivske (“Cher”) production license has not been awarded by the State Geological Service of Ukraine (“SGS”) within the expiry date of 14 May 2018.

WGI believes that SGS has not acted in line with the current legislation and is evaluating all possible options including filing an appeal in an administrative Ukrainian court. In the mean while it has asked the Production Operator, a wholly owned subsidiary of Cadogan, to halt production operations and put the facilities in preservation mode, ready to be re-started upon receiving the renewal of the license.

The impact on Cadogan of the shut-down of Cher is a loss of production of about 15 boepd (net to Cadogan)

Commenting, Guido Michelotti, CEO of Cadogan, said:

“The delayed approval of the application to renew Cher license will have a limited impact on Cadogan’s p/l given the marginal production volume involved and the current severe taxation regime.

-ENDS-

About

Cadogan is an independent oil and gas company which operates exploration and production licenses in Western Ukraine, conducts gas trading operations, and provides services to E&P companies.

Westgasinvest (“WGI”), a company participated by Eni Ukraine Holdings BV, 50.01%, NJSC “Nadra Ukrayny”, 34.99%, and Cadogan Ukraine Holdings Limited 15%., is the license holder of Cheremkhivsko-Strupkivske license.

Cheremkhivsko-Strupkivske (“Cher”) license was awarded in 2002 to NJSC “Nadra Ukrayny”’s subsidiary SE “Zahidukrgeologia“ and transferred to WGI in 2012 within the context of the Eni-operated shale gas project. A subsidiary of Cadogan owns a 54.2% interest in the license.

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