CAD Cadogan Energy Solutions Plc

 
TIDMCAD 
 
CADOGAN PETROLEUM PLC 
 
                           Cadogan Operations Update 
 
The Company has noted that the Ukrainian Government last week passed emergency 
budget legislation increasing production taxes for the oil and gas industry for 
the period 1 August 2014 to 31 December 2014. Tax on gas production from 
horizons shallower than 5,000m increases to 55 per cent, for those deeper than 
5,000m it increases to 28 per cent (from 28 per cent and 15 per cent 
respectively). Tax on oil production from horizons shallower than 5,000m 
increases to 45 per cent (previously 39 per cent), for those deeper than 5,000m 
it increases to 21 per cent (previously 18 per cent). For gas wells put on 
stream after 1 August 2014, a coefficient of 0.55 will be applied against the 
rates for the first 2 years of production. 
 
The Company believes that at current production levels, given its current cash 
position of $47.0 million (excluding $1.0 million of the Group's share of cash 
and cash equivalent in joint ventures and excluding $5.0 million of 
yield-generating fixed income investments), the increase in rates until 
31 December 2014 will not have a material effect on the Group's financial 
position, operations or work programme. 
 
The Board of Cadogan will continue to evaluate the impact of the changing 
fiscal environment and take such operational and financial measures as it may 
consider necessary to protect the interests of the Company and its shareholders. 
 
Further to the Company's operations update dated 15 May 2014, Cadogan now 
expects a slight delay for commencing drilling its first well in Debeslavetaska 
to November 2014 (previously late September), due to reverification of the 
drilling coordinates. 
 
Cadogan is pleased to report a further increase in stable production in 
Monastyretska to 50 bopd. Performance tests continue. 
 
Enquiries: 
 
Cadogan Petroleum Plc                                    +380 (44) 591 0390 
 
Bertrand des Pallieres    Chief Executive Officer 
Laurence Sudwarts         Company Secretary 
 
Cantor Fitzgerald Europe                                 +44 (0) 20 7894 7000 
 
David Porter 
Richard Redmayne 
 
 
END 
 

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