Cadogan Shuffles Management

- Cadogan Shuffles Management

Tuesday, August 02, 2011
Cadogan Petroleum plc

The Board has completed a review of the Cadogan Board structure and composition, with a view to putting in place a Board best suited to develop the Company, following the completion of the major transaction with Eni S.p.A.

As a result of this review, in order to manage the increased operational activity in Ukraine, Ian Baron becomes Chief Operating Officer, responsible for the Company's operations on all of its current licenses and technical support on new business activities. Bertrand des Pallieres, currently a non-executive Director, becomes Chief Executive Officer, focusing on the strategic development of the business, in particular new acquisitions, key government relationships and industrial partnerships. These appointments take immediate effect. As a consequence of this Bertrand will over the next few months relinquish his day to day responsibility as CEO of SPQR Holdings SAE. Gordon Stein will remain as Chief Financial Officer.

The new Board structure will consist of an independent non-executive Chairman, two further independent non-executive Directors, a non-executive Director appointed by SPQR Holdings SAE, and three executive Directors. The Board is satisfied that this structure complies with the UK Corporate Governance Code.

Philip Dayer (acting non-executive Chairman) and Nick Hooke (independent non-executive Director) have tendered their resignations as non-executive directors, with immediate effect, as they believe that there should be more independent directors on the Board in view of SPQR Holding's substantial shareholding, despite the proposed structure complying with the Code. The Board would like to thank both Philip Dayer and Nick Hooke for their contributions to the Company since its IPO in 2008.

Mr. Zev Furst has joined the Board as a non-executive Director and will act as interim Chairman and will lead the recruitment process for a permanent Chairman and further independent non-executive Directors. It is anticipated that these further appointments to the Board will be announced by the end of September 2011.

Mr. Furst is a leading global business and communications strategist who has advised political leaders, foreign principals and corporate executives of Fortune 100 companies. He is the Chairman and CEO of First International Resources, an international corporate and political consulting firm he founded in 1992. In recent years, he has also advised and consulted with candidates running for national office in Israel, Japan, Mexico and Ukraine. In 1986, Mr. Furst was a founding partner of Meridian Resources and Development Ltd., an international commodities trading company specializing in chemicals and petroleum products. Mr. Furst currently serves as Chairman of the International Board of the Peres Center for Peace and is a member of the Advisory Board of the Kennan Institute in Washington, DC. He has written and lectured extensively on international affairs, business and political strategy and the role of media in politics and diplomacy. Any matters to be disclosed under paragraph 9.6.13 of the Listing Rules will be announced in due course.

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Drilling Preparations Underway at Cadogan's Ukraine Well

- Drilling Preparations Underway at Cadogan's Ukraine Well

Tuesday, August 02, 2011
Cadogan Petroleum plc

Cadogan reported that rig acceptance and preparations for drilling of the Pokrovskoe 1 well on the Pokrosvskoe license in eastern Ukraine commenced on July 24, 2011. As previously advised the well had been suspended in December 2010 at 5450 meters pending the sourcing of a suitable alternative all weather drilling rig. The Company recently awarded a drilling services contract to Saipem. Target depth is 5800 meters and the Company expects the drilling and preliminary testing of the well to take approximately 60 days.

Operations have also commenced on the work-over of the Zagoryanska 1 well on the Zagoryanska license also in eastern Ukraine. A work-over drilling unit will be mobilized to the location during the first week of August 2011 to undertake perforation and testing operations, which are expected to be completed by end of 3Q 2011.

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Eni Takes Stake in Cadogan's Ukrainian Licenses

Eni Takes Stake in Cadogan's Ukrainian Licenses

Wednesday, April 13, 2011
Cadogan Petroleum plc

Cadogan has reached agreement with Eni for the acquisition of an interest in the Company's Pokrovskoe and Zagoryanska licenses in the east of Ukraine.

Eni will initially acquire a 30% interest in the Pokrovskoe license, with the option to acquire a further 30% interest in the future. Eni will also acquire a 60% interest in the Zagoryanska license. The initial consideration will comprise 100% funding of a work program of approximately $30 million (excluding VAT), including drilling and seismic re-processing, plus a $38 million payment. Subject to successful results from the above programs and award of production licenses, Eni will pay the Company further amounts of up to $90 million.

The transaction, which is a class one transaction under the UKLA Listing Rules, is subject to Cadogan shareholder and Ukrainian Anti-Monopoly Commission approval. The Company plans to issue a circular to shareholders in May 2011, giving full details of the proposed transaction and convening a general meeting of the Company prior to mid June 2011. Other Conditions Precedent to completion of the deal include satisfactory conclusion of an internal re-structuring within the Company, no material adverse effects between signature of the agreement and completion and all representations and warranties of the Company and Eni being true at completion. It is planned that the transaction will complete on or around June 30, 2011.

The $30 million work program on Pokrovska will be used to fulfill the work obligations on the license and will test the potential of the Upper and Lower Visean intervals which had strong indications of hydrocarbons in wells on the license. The cash proceeds arising from the transaction will be applied to finance any future Zagoryanska work programs and fund development of the Company's other assets. Additional future cash proceeds from successful operational results and the award of production licenses will further strengthen the Company's financial position, enabling it to finance its share of future development activities and to invest in new business opportunities.

Commenting on the proposed transaction Simon Duffy, Chairman, stated, "The announcement of this major transaction signifies a turning point for Cadogan. With Eni as a strategic partner, the Company can more rapidly develop the potential in these licenses and can embark on other significant oil & gas opportunities that are present in Ukraine."

Ian Baron, Chief Executive Officer commented, "The investment by Eni in two of our Ukrainian assets vindicates the Board's view, not only of the value of these particular assets, but also the scale and substance of the opportunity in the country. We strongly believe that Ukraine offers significant opportunity for Cadogan and Eni, which we can develop through combining the expertise of Cadogan's staff with the resources of a major oil company."