Cadogan, Eni to develop shale gas project in Western Ukraine

Eni (ENI IM), Italy’s leading gas E&P company, said it signed an agreement with Ukrainian state company Nadra Ukrainy and independent E&P Cadogan Petroleum (CAD LN) to acquire a 50% interest in Westgazinvest, a company holding a license to develop shale gas in Western Ukraine (Lviv basin). The license areas of the target totals 3,800 square kilometer, according to Eni. Cadogan confirmed the information provided by Eni, with no further details. So far, we do not see any direct implications for Cadogan’s fundamentals, but given the halo of popularity in shell gas, we believe this news could positively affect Cadogan’s shares.