OREANDA-NEWS. November 9, 2010. Oil & Gas Cadogan Petroleum, an onshore explorer for oil and natural gas in Ukraine, has entered into a settlement agreement with Nadra Ukraine, the state owned company, concerning the ownership of the license for the Zahorianske field, according to The Kommersant news announced on Nov 8. Nadra Ukrainy applied to the Higher Administrative Court of Ukraine to withdraw the cases between companies over the previous ownership of the licenses for the Zahorianske fields. In its turn Cadogan, is supposed to purchase five wells from Nadra Ukrainy for USD  3.2mn including the Zahorianske-3 well that went into commercial production on Aug 1, 2010.

Millennium Capital considers the news as POSITIVE for the company. The license problems dated back to the summer of 2008 had often been the cause of the company’s stock price slipping as both the Pirkovske and the Zhorianske fields were crucial for the company business in Ukraine. As earlier reported, a stable production process at the Zahorianske-3 well will bring the flow rates of up to 50 Mcm/day. Millennium Capital estimates the sales of natural gas from the well to potentially bring about USD 5.0 mn p.a in revenues for the company.