Information from Interim report January - March 2018 Misen Energy AB (publ)

Following is a summary of the financial information given in Interim report January - March 2018 ("Q1 2018") from Misen Energy AB (publ) published today. The complete report is attached and is available in both English and Swedish on the Company's website: http://misenenergy.se/repository/Financial_reports_ENG/Misen_Energy_Q1_2018_ENG.pdf 

Summary of results: 

  • Given that the parties to an arbitration proceeding commenced by PJSC Ukrgasvydobuvannya confirmed their agreement to terminate the joint Activity Agreement No.3 (“JAA No.3”), Misen Energy AB (publ) believes that control over the specific assets under JAA No.3 no longer exists. Thus, Misen Energy AB (publ) continues accounting treatment of 50.01% along with PUL and Mr Konstantin Guenevski participation interest in the Joint Activity (“JA”) under which assets and liabilities are not presented in the financial statements.
  • Accumulated earnings per share for Q1 2018 are SEK -0.04.

Key events during Q1 2018: 

  • On 24 January 2018, Misen Enterprises AB and LLC Karpatygaz, partially owned subsidiaries of Misen Energy AB (publ) attended the closing statement in accordance to the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce.
  • On 2 March 2018, the Company closed the sale of 2% of the shares and shares capital in its partially owned subsidiary Misen Enterprises AB to Mr Konstantin Guenevski, Bulgarian citizen, who is a senior trader of one of the world’s leading independent commodity trading and logistics houses. The purchase sum amounts to MEUR 1.0 (KSEK 9,964). As a result, Misen Energy AB (publ) secured short term financing for Swedish operations.
  • On 15 May 2018, the hearing was held in the case commenced by the National Anticorruption Bureau of Ukraine to the Commercial Court of Kiev and the court therein decided to postpone consideration of the case until 7 June 2018.
  • In accordance to the lease agreements concluded in May 2017 in Q1 2018 PJSC Ukrgazvydobuvannya used the BCSs transferred by LLC Karpatygaz in its capacity as Operator of the Joint Activity until 30 April 2018. As of publishing of this report, PJSC Ukrgasvydobuvannya failed to make the lease payments to the JA.
  • As of publishing of this report, PJSC Ukrgazvydobuvannya refused to deliver hydrocarbons since December 2016 to the JA (since June 2017 excluding incremental production of natural gas).
  • In 2017 the court hearings in Sberbank Leasing cases were held. The court set the dates for the hearings on 31 May and 6 June 2018.

Q1 2018 (Q1 2017): 

  • Consolidated operating group loss/income: KSEK -9,295 (-26,654)
  • Consolidated group net turnover: KSEK 163 (3,854) 
  • Earnings per share: SEK -0.04 (-0.13)
  • Production of natural gas: at zero level (at zero level)

Key events after end of Q1 2018: 

  • Pre-trial investigations in criminal cases are ongoing.
  • As of date of publishing of the report, the JAA’s participants discuss conditions for renewal of the agreements for lease of BCSs.
  • As of publishing of this report, PJSC Ukrgazvydobuvannya refused to deliver hydrocarbons extracted since December 2016 until February 2018 to the JA (since June 2017 excluding incremental production of natural gas).
  • As of publishing of this report, PJSC Ukrgasvydobuvannya failed to pay for the BCSs lease to the JA.

For further information, please contact:

Göran Wolff, MD                 

Direct line:  +46 31 759 50 72
Mobile:       +46 709 45 48 48
E-mail:        goran@misenenergy.se
                   info@misenenergy.se

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 traded on Nasdaq First North since 12 June 2007.In 2011, Misen Energy AB (publ) acquired Misen Enterprises AB and its Ukrainian subsidiary, LLC Karpatygaz, including the rights to 50.01% of the revenue and profit from a gas production project in Ukraine. Under IFRS rules, this transaction is classified as a reverse takeover. In consideration of the acquisition, a new share issue was carried out. The gas producing assets were acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement between at that time the wholly-owned direct and indirect subsidiaries of Misen Energy AB (publ), i.e. Misen Enterprises AB and LLC Karpatygaz (together 50.01%) and PJSC Ukrgasvydobuvannya (49.99%), a subsidiary of the National Joint Stock Company Naftogaz of Ukraine. PJSC Ukrgasvydobuvannya is the largest producer of natural gas in Ukraine. The purpose of the Joint Activity Agreement is to significantly increase production of gas and oil by providing modern technologies via a large-scale investment program for the purposes of attainment of profits.
In June 2016 and in July 2017 Misen Energy AB (publ) sold respectively 37.5% and 10% of Misen Enterprises AB shares to the Hong Kong based company Powerful United Limited. In March 2018, Misen Energy AB (publ) sold 2% of Misen Enterprises AB shares to Mr. Konstantin Guenevski. Owning (the remaining) 50.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 50.5% of the future dividends from the operations in Ukraine.
The registered office of Misen Energy AB (publ) is in Stockholm and the shares are traded on First North under identification ticker MISE. The Certified Adviser of the company at Nasdaq First North is Erik Penser Bank AB.
For further information, please visit our website www.misenenergy.se.

This information is information that Misen Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:30 CET on 31 May 2018.

About Us

Misen Energy AB(publ) (former Svenska CapitalOil AB(publ) ) is a Swedish oil and gas exploration and extraction company with operations in Ukraine. The company was founded in 2004 and the share is since 12 June, 2007, traded on NasdaqOMX First North. In 2011 Misen Energy AB acquired Misen Enterprises AB and its Ukrainian subsidiary, KarpatyGaz, including the rights of 50,01 % of the revenue and profit from a gas production project in Ukraine. As consideration of this acquisition a new share issue was performed.The gas extraction assets have been acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement (the “JAA”) between the wholly owned subsidiaries of Misen Energy AB, i.e. Misen Enterprises AB, KarpatyGaz ( together 50.01%) and Ukrgazvydobuvannya,( 49.99%) the largest producer of natural gas in Ukraine and subsidiary of the publicly owned company Naftogaz, Ukraine. The value of the assets is estimated to be substantially more than the purchase price for Misen Enterprises AB.The purpose of the project is to significantly increase production of gas and oil by implementing new technology and a large-scale investment program.The registered office of Misen Energy AB is in Stockholm and the shares are traded on First North under identification MISE. The Certified Adviser of the company at NasdaqOMX First North is Thenberg & Kinde Fondkommision AB. For further information please visit our web site www.capitaloil.se.

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