Cadogan says licenses unaffected, trading resumed today

In a statement distributed today, Cadogan Petroleum (CAD LN: N/R) claimed that information questioning the invalidity of its licenses was incorrect. The company explained that the rights derived from the Pirkovske and Zagoryanska licenses were re-registered twice in 2007, first from Poltavanaftogazgeologiya (PNG) to its parent company, Nadra of Ukraine, and secondly, in the second half of 2007, from Nadra to the JV between Cadogan and Nadra. The company said it was not directly the subject of recent court rulings, and no action was taken against the company. Cadogan also said it was not a party in the proceedings; it was not aware of them or notified of them. As an interested party, however, Cadogan intends to challenge the rulings. Dealings in Cadogan stock were restored this morning at the company’s request, at an opening price of 60 pence, 87.5 pence below its previous close on July 21. Vladimir Nesterenko: It looks like there are currently two sets of licenses for the same fields and type of works, one belonging to PNG and the other to Cadogan. This represents a risk of further court proceeding with regards to the JV’s licenses, which in turn might involve suspension of operations on the fields.