Amendments in the Ukrainian taxation laws will affect Misen’s year-end result
As of August 2014, Ukraine introduced a set of emergency laws addressing the turbulent situation in the country. Part of these laws concern the need to increase tax collections to the state budget. In particular, the subsoil use tax for production of natural gas in the depth of up to 5,000 meters has been raised from 28% to 55%. Misen is producing primarily from these depths. The subsoil use tax is payable at the time of production and delivery of gas into the gas transport system This puts additional financing constrains on the production companies in Ukraine. The tax increase is defined as temporary and valid till the end of 2014. Misen’s end-year result will be negatively affected by these changes as the production of five months of 2014 (August through December) will be subject to the tax increase. This will also have a negative effect on the implementation of the Joint Activity investment program.
For further information please contact:
Göran Wolff, MD
Misen Energy AB (publ) (formerly Svenska Capital Oil AB (publ)) is a Swedish upstream oil and gas company with operations in Ukraine. The company was founded in 2004 and its shares are since 12 June 2007 traded on NASDAQ OMX First North.
In 2011, Misen Energy AB (publ) acquired all shares in Misen Enterprises AB and its wholly-owned Ukrainian subsidiary, LLC Karpatygaz, including the rights to 50.01% of the revenue and profit from a gas production project in Ukraine. The rights and cooperation relating to the gas production is governed by a Joint Activity Agreement among Misen Enterprises AB and LLC Karpatygaz (together 50.01%) and PJSC Ukrgasvydobuvannya (49.99%), the largest private producer of natural gas in Ukraine and subsidiary of the National Joint Stock Company Naftogaz of Ukraine.
The purpose of the joint activity project is to significantly increase production of gas and oil by providing modern technologies via a large-scale investment program.
The registered office of Misen Energy AB (publ) is in Stockholm and the shares are traded on NASDAQ OMX First North under identification ticker MISE.
The Certified Adviser of the company at NASDAQ OMX First North is Thenberg & Kinde Fondkommission AB.
For further information please visit our website www.misenenergy.se.