Ukraine gas group reaches AIM
Article Date: Jun 18 2008Shares in Ukraine-focused AIM debutant Cadogan Petroleum have fallen 10.8 per cent today from their £139 million 230p offer price.
The company, which has been mooting an AIM float for at least two years, used UBS as global co-ordinator and sponsor and Fox-Davies Capital as co-lead manager to the float, whose proceeds will fund drilling for gas and condensate in the Ukraine’s Dnieper-Donets and Carpathian Basins. By late this afternoon, the shares had slipped to 205p in a falling market, valuing the company at some £478 million.
Cadogan, chaired by Simon Duffy with Mark Tolley as chief executive, claims more than 80 million barrels of oil equivalent in two ‘major’ gas fields in the eastern Ukraine, with two ‘minor’ fields as well. Independent consultant Gaffney Cline estimates that at the beginning of this year the company had proved net gas reserves of 109 billion cubic feet, 7.6 million barrels of condensate and 160,000 barrels of oil, which adding probable and possible net reserves increases to 588 billion cubic feet of gas, 48 million barrels of condensate and 1.6 million barrels of oil.
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