Eni acquires interest in Cadogan licenses

Cadogan Petroleum (LSE: CAD LN) and Italy’s Eni entered into an acquisition agreement according to which Eni will acquire a 30% interest in the Pokrovskoe licence, with an option to acquire a further 30% interest in the future, Cadogan announced yesterday. Eni will also acquire a 60% interest in the Zagoryanska license. The initial consideration comprises funding of a USD 30 mln work program plus a USD 38 mln payment. If the program is successful, Eni will further pay Cadogan up to USD 90 mln. Antonina Davydenko: Though Cadogan’s management previously mentioned potential farm-out agreements upon the settlement of its licenses issues, we deem the announced agreement with Eni as positive for the stock.