Cadogan resolves dispute over Pirkovskoye and Zagoryanska fields

Cadogan Petroleum (AIM: CAD LN) entered into an agreement with NSJC Nadra Ukraine and its subsidiary company Poltavanaftogazgeology, whereby the companies will apply to the Higher Administrative Court of Ukraine to withdraw the cases between them over the ownership of the licenses for the Pirkovskoye and Zagoryanska fields, the company announced in a release this week. The agreement requires court approval of settlement terms between the parties, which is anticipated at a hearing planned for October 6, 2010. In addition, also subject to court approval of settlement terms, Cadogan agreed to purchase purchase five wells for US 3.2 million on the Zagoryanska license from Nadra Ukraine, including the Zagoryanska 3 well, which went into commercial production on August 1, 2010 and continues to produce gas and condensate at rates of approximately 50,000 and 15 cubic mt per day, respectively. Ruslan Patlavskyy: As we noted in our news comment on Monday, a positive resolution to Cadogan’s key license disputes clears obstacles to the approximately 60% price appreciation potential to GBp 32 per share and should stimulate improved investor interest in the stock.