London High Court unlocks USD 21 mln for Cadogan
18 February 2013
The High Court in London issued a ruling on Feb. 15 in favor of Cadogan Petroleum (CAD LN) in the sum of USD 21 mln in its lawsuit filed in 2009 against Global Process Systems (GPS), the company reported. GPS’ counterclaim for USD 7.5 mln was dismissed. The amount must be paid by Mar. 4, 2013. The Court adjourned a decision on further damages against GPS estimated at USD 10.5 mln pending the sale of Cadogan’s natural gas processing plants. In the meantime, Cadogan will continue to retain legal title to the plants and will allow GPS to continue marketing them on a non-exclusive basis.
Roman Dmytrenko: The ruling sent Cadogan shares soaring 18.3% last Friday. But even with this rally, the company’s MCap is just 5% above its end-August net cash (USD 46.9 mln), implying the market prices the company’s operations and 2.6 MMboe reserves at just USD 2.4 mln. With an additional USD 21 mln to be gained from the ruling and another possible judgment in the pipeline, the company’s cash position will grow very fast in the coming months. So the rally in the company’s stock is far from over.
