Resolution of Licence Issues

RNS Number : 7999S

Cadogan Petroleum PLC

16 September 2010

 



RNS

Cadogan Petroleum plc

Resolution of licence issues

Further to the recent announcement regarding the agreement on the resolution of the indirect challenge to the Company's Pirkovskoe and Zagoryanska licences, the Board is pleased to report that the Company has been advised by the State Geological Service - Interdepartmental Work Group on subsurface use, which is part of the Ministry of Environmental Protection of Ukraine, that it has resolved that the following matters should be submitted to the Minister for final approval.

1.    The approval of the change to the work programme at Pokrovskoe 1

2.    The lifting of the suspension of the Debeslavtska field

3.    The removal of the suspension on the Slobodo Rungarske field

4.    The extension of the Pirkovskoe licence to June 2015

5.    The amendment of the work programme at Zagoryanska

These resolutions will permit the previously announced deepening of the Pokrovskoe 1 well to commence and test a structural target identified on recently reprocessed seismic data. At Debeslavtska they will allow production from existing wells to recommence and the drilling of a series of three new shallow production wells. The Board remains confident that the lost production from this field due to the suspension can be recovered. At Slobodo Rungarske the abandonment of several non-commercial oil wells is underway and the deeper potential is currently under evaluation.  At Pirkovskoe 1, minor oil production can resume and allow the Company to continue its evaluation of the Pirkovskoe 1 well.Reserves attached to the Pirkrovskoe licence, as at 31 December 2009, are 2.4 mmboe of proved and probable reserves, 5.0 mmboe of possible reserves and 134.0 mmboe of contingent resource. The licence area is adjacent to the Zagoryanska licence where the Lower Visean interval is producing successfully at Zagoryanska 3.

Monastryeksa Licence

The Board also announces that the Monastryeksa licence has been extended to December 2014.  This licence contains the Blazivska field which was previously under the Company's operatorship and had been producing small amounts of oil. The terms of the extension will allow production to recommence shortly in parallel with an evaluation program to establish a plan to increase production.

Commenting on these developments, Ian Baron, Chief Executive Officer, said "The resolution of our licence issues clearly indicates the improving operational climate for Cadogan in Ukraine. It also highlights the progress that the Company has made over the last 12 months in evaluating and developing economically successful projects to increase value for shareholders."

Enquiries

Cadogan Petroleum plc	[phone]
Ian Baron, Chief Executive Officer
Stefan Bort, Company Secretary

Bankside	[phone]
Simon Rothschild
Rose Oddy

Ends.

 

END

 

 

MSCVQLBFBKFZBBK