Board changes and operational update

RNS Number : 5249L

Cadogan Petroleum PLC

02 August 2011

 



 2 August 2011

Cadogan Petroleum Plc ("Cadogan" or "the Company")

Board Changes & Operational Update

The Board has completed a review of the Cadogan Board structure and composition, with a view to putting in place a Board best suited to develop the Company, following the completion of the major transaction with Eni S.p.A.

As a result of this review, in order to manage the increased operational activity in Ukraine, Ian Baron becomes Chief Operating Officer, responsible for the Company's operations on all of its current licences and technical support on new business activities. Bertrand des Pallieres, currently a non-executive Director, becomes Chief Executive Officer, focussing on the strategic development of the business, in particular new acquisitions, key government relationships and industrial partnerships. These appointments take immediate effect. As a consequence of this Bertrand will over the next few months relinquish his day to day responsibility as CEO of SPQR Holdings SAE. Gordon Stein will remain as Chief Financial Officer.

The new Board structure will consist of an independent non-executive Chairman, two further independent non-executive Directors, a non-executive Director appointed by SPQR Holdings SAE, and three executive Directors. The Board is satisfied that this structure complies with the UK Corporate Governance Code.

Philip Dayer (acting non-executive Chairman) and Nick Hooke (independent non-executive Director) have tendered their resignations as non-executive directors, with immediate effect, as they believe that there should be more independent directors on the Board in view of SPQR Holding's substantial shareholding, despite the proposed structure complying with the Code. The Board would like to thank both Philip Dayer and Nick Hooke for their contributions to the Company since its IPO in 2008.

Mr Zev Furst has joined the Board as a non-executive Director and will act as interim Chairman and will lead the recruitment process for a permanent Chairman and further independent non-executive Directors.  It is anticipated that these further appointments to the Board will be announced by the end of September 2011.

Mr Furst is a leading global business and communications strategist who has advised political leaders, foreign principals and corporate executives of Fortune 100 companies. He is the Chairman and CEO of First International Resources, an international corporate and political consulting firm he founded in 1992.  In recent years, he has also advised and consulted with candidates running for national office in Israel, Japan, Mexico and Ukraine. In 1986, Mr. Furst was a founding partner of Meridian Resources and Development Ltd., an international commodities trading company specializing in chemicals and petroleum products. Mr. Furst currently serves as Chairman of the International Board of the Peres Center for Peace and is a member of the Advisory Board of the Kennan Institute in Washington, DC. He has written and lectured extensively on international affairs, business and political strategy and the role of media in politics and diplomacy. Any matters to be disclosed under paragraph 9.6.13 of the Listing Rules will be announced in due course.

Operational update

Cadogan reports that rig acceptance and preparations for drilling of the Pokrovskoe 1 well on the Pokrosvskoe licence in eastern Ukraine commenced on 24 July 2011. As previously advised the well had been suspended in December 2010 at 5450 meters pending the sourcing of a suitable alternative all weather drilling rig. The Company recently awarded a drilling services contract to Saipem.  Target depth is 5800 meters and the Company expects the drilling and preliminary testing of the well to take approximately 60 days.

Operations have also commenced on the work-over of the Zagoryanska 1 well on the Zagoryanska licence also in eastern Ukraine. A work-over drilling unit will be mobilized to the location during the first week of August 2011 to undertake perforation and testing operations, which are expected to be completed by end of Q3 2011.

Enquiries

Cadogan Petroleum plc	c/o Bankside Consultants
Bertrand des Pallieres, Chief Executive Officer	+ 44  20 7367 8888
Ian Baron, Chief Operating Officer
Gordon Stein, Chief Financial Officer
Stefan Bort, Company Secretary

Bankside
Simon Rothschild	[phone]

Matrix
Robin Henshall	[phone]
James Pope

 

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