Regional court invalidates Cadogan’s licenses to explore two Ukrainian gas deposits

The Poltava Regional Economic Court invalidated the licenses of Cadogan Petroleum (CAD LN: N/R) for the exploration and development of the Pirkovske and Zagoryanske deposits in Poltava region, Interfax reported today, citing Nadra of Ukraine’s press service. The lawsuit was initiated by Poltavaneftegazgeologiya, a subsidiary of Nadra of Ukraine and prior license holder for the two deposits, after it was recently granted renewed licenses (until 2010 and 2009, respectively) by the government. Vladimir Nesterenko: Of the two, Pirkovske accounts for 100% of Cadogan’s 2P reserves and production, and around 65% of its P50 prospective resources. Although this might only be the beginning of a long court battle, the news will certainly have a tough pressure on Cadogan’s share price. During the last trading hour, CAD lost 3%, down to 159 pence. We look forward to comments from the company’s management.