Formal resolution of licence

RNS Number : 5062U

Cadogan Petroleum PLC

18 October 2010

 



 18 October 2010

Cadogan Petroleum plc  -

Formal resolution of Pirkovskoe and Zagoryanska licence issues

Further to the announcement made on Monday 13 September, the Board of Cadogan Petroleum plc ("Cadogan") is pleased to confirm that the Higher Administrative Court of Ukraine ("the Court") has formally approved the terms of the previously announced settlement agreement entered into by Cadogan with NSJC Nadra Ukraine ("Nadra") and its subsidiary company Poltavanaftogazgeology ("PNGG"). The Ministry of Environmental Protection and the State Geoservice were also parties to this approval. As a result, the Court has discontinued the case between PNGG and Nadra over the previous ownership of the licence for the Pirkovskoe field. The approval of the Court was a pre-condition of the settlement agreement and now enables Cadogan and Nadra to finalize the full sale and purchase agreement for the wells on the Zagoryanska license, as previously announced. This sale and purchase agreement contains conditions precedent that require the parties to withdraw or terminate all legal actions against each other with respect to the Pirkovskoe and Zagoryanska licenses.

Ian Baron, Cadogan's CEO stated "The approval of this agreement by the Court confirms full support for settlement of all currently outstanding matters with respect to Cadogan's licenses. We now look forward to developing our business in Ukraine and continuing our cooperation with the State Authorities in a transparent and mutually beneficial manner."

Enquiries
Cadogan Petroleum plc	[phone]
Ian Baron, Chief Executive Officer Stefan Bort, Company Secretary
Matrix                                                                   Robin Henshall James Pope	[phone]

Bankside	[phone]
Simon Rothschild
Rose Oddy

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