Cadogan provides an update regarding its Zagoryanska special permit ("Licence"). The Ministry of Environment of Ukraine has issued an extension to Licence #310 for the Zagoryanska area to Cadogan. This Exploration & Development licence has now been extended by 5 years to April 24th 2014.
The required work programme includes, i) the acquisition of 3D seismic data across the field which will be completed in 1Q 2009, ii) the testing of well #3 which is currently in progress, iii) the workover of well #2 which is already included in the 2009 work programme, and iv) the drilling of an appraisal well. The final conclusion of the work programme is not required to be completed before the end of the licence period in April 2014.
Mark Tolley, Chief Executive commented:
"We are very pleased with the extension of this licence which indicates the full supportof the Ministry of Environment in our plans for the long term appraisal and development of this licence area. At any time during the term of this licence, as soon as the work programme has been successfully completed, Cadogan will aim to convert this licence to a long term Production Licence".
