Cadogan Petroleum to hold an IPO on LSE

Cadogan Petroleum, an oil & gas exploration and production company with onshore gas and condensate assets in Ukraine, today announced plans to hold an IPO on the London Stock Exchange. Cadogan will offer new and existing ordinary shares. Cadogan has selected UBS as sole global coordinator, bookrunner and sponsor, while Fox Davies Capital will act as a co-lead manager. A Financial Times article today said that Cadogan will seek to attract GBP 125 mln (total equity value at GBP 600 mln). Cadogan Petroleum began purchasing assets in Ukraine at the end of 2005. According to Gaffney Cline & Associates, as of Jan. 31, 2008, its proved net reserves amounted to 109 Bcf of gas, 7.6 MMbbl of condensate and 0.16 MMbbl of oil (estimated total of 27.4 MMboe); its net proved and probable reserves amounted to 320 Bcf of gas, 22 MMbbl of condensate and 0.77 MMbbl of oil (estimated total of 80.4 MMboe). The company has no commercial production so far. Vladimir Nesterenko: The figures disclosed by FT look really high, pointing to at least twice higher valuation by 1P reserves than that of JKX, which is the largest private oil and gas producer in Ukraine.