GPS Settlement Agreement

RNS Number : 8662A

Cadogan Petroleum PLC

15 October 2009

 



15 October 2009

Cadogan Petroleum PLC

("Cadogan" or the "Company")

GPS Settlement Agreement

Cadogan announces that it has resolved the disputes that existed between the Company and Global Process Systems LLC ("GPS") concerning contracts for the fabrication and delivery of two gas treatment plants for a total purchase price of US$54.5 million. The key commercial terms of the settlement provide for GPS exclusively to market the plants for a 10 month period and, if a sale is achieved, for Cadogan to receive in stage payments an aggregate cash consideration of US$38.5 million. If the plants are not sold within this period, then GPS has agreed to take the plants to stock and Cadogan will receive in stage payments an aggregate cash consideration of US$37.5 million. The settlement also provides for the release by GPS of a US$11 million contractual claim against Cadogan for what would otherwise have been the balance of the consideration for the plants. Cadogan continues to pursue claims against all the other parties to the litigation, commenced by Cadogan in London, which has been the subject of previous announcements by the Company.

Enquiries:

Cadogan Petroleum	[phone]
Ian Baron   Stefan Bort
Pelham PR
James Henderson	[phone]
Evgeniy Chuikov	[phone]
Phillip Dennis	[phone]

 

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