Re GPS SETTLEMENT

RNS Number : 6889I

Cadogan Petroleum PLC

20 June 2011

 

Cadogan Petroleum plc ("Cadogan" or the "Company").

Global Process System Inc ("GPS") Settlement

Further to the announcement made on 16 June 2011 at the Annual General Meeting concerning the GPS Settlement , information received subsequently  (16 June 2011) from GPS has indicated that a payment will not now be voluntarily made by them prior to the sale of the gas plants.  Cadogan continues to retain legal title to the gas plants during the sale process and will obtain a further valuation shortly, so that the Board can accurately assess whether any impairment to their value is necessary in the Half Yearly Report.

Although Cadogan may  continue to allow GPS to market the plants as per the settlement agreement, the Company will also commence efforts to market the plants directly to end users and will enforce its rights under the agreement for any shortfall, against the $30 million currently outstanding under the settlement agreement.   

GPS are currently following up several opportunities for near term requirements for gas processing facilities with similar specifications to Cadogan's gas plants. The Board remains optimistic that payment in respect of its rights against GPS will be received in 2011.

Enquiries

Cadogan Petroleum Plc		+ 44 20 7487 8301
Ian Baron, CEO Gordon Stein, CFO Stefan Bort, Company Secretary
Matrix		[phone]
Robin Henshall
James Pope
Bankside Consultants		[phone]
Simon Rothschild

 

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