LONDON: Cadogan Petroleum plc, an independent, diversified oil & gas company listed on the main market of the London Stock Exchange, has reached an agreement with Ukrinvest Group for the sale of Gazvydobuvannya LLC for a total consideration of $2.8 million.

Gazvydobuvannya LLC is one of two wholly owned subsidiaries, based in the East of Ukraine, which does not hold licenses or physical assets and which management has been actively seeking to sell.

Guido Michelotti, CEO of Cadogan Petroleum plc, commented: “The sale of Gazvydobuvannya LLC is part of Cadogan?s goal of building a platform for growth in Ukraine through the prudent use of its cash resources and the monetization of its legacy assets. The first step of our production growth was delivered through the re-entry of old wells, requiring minimal capital deployment. The second step has been achieved by the success of well Blazh 10, a substantial portion of which will be self-financed through the sale of this company”.

Edited by Kazim Rizvi