Antimonopoly Committee gives Eni permission to acquire Cadogan field interests

The Antimonopoly Committee of Ukraine allowed Eni to acquire over 50% of the Pokrovske and Zagoryanske fields from Cadogan Petroleum (LSE: CAD LN), Interfax reported on Friday. The transaction still requires the approval of Cadogan’s shareholders; in a separate announcement on Friday, Cadogan said it would seek shareholder approval for the sale 60% of its Pokrovske and Zagoryanske fields to Eni at an EGM on June 16. Previously, in April, Cadogan said it reached a preliminary agreement with Eni to sell it a 30% interest in the Pokrovske field (with the option to acquire another 30% later on) and 60% of the Zagoryanske field. The initial consideration is comprised of funding a USD 30 mln work program and a USD 38 mln payment. If the program is successful, Eni would pay Cadogan up to another USD 90 mln. Antonina Davydenko:  We expect Cadogan shareholders to approve of the sale agreement since cooperation with a major oil company like Eni is the best possibility for Cadogan to raise sufficient funds to start operations at its Pokrovske and Zagoryanske fields.