Information from year-end report January - December 2017 Misen Energy AB (publ)

Following is a summary of the financial information given in year-end report January - December 2017 ("12M 2017") from Misen Energy AB (publ) published today. The complete report is attached (Misen Energy year end 2017 ENG) and available in both English and Swedish on the Company's website: http://misenenergy.se/repository/Financial_reports_ENG/Misen_Energy_year_end_2017_ENG.pdf

Summary of results: 

  • Given that the parties to an arbitration proceeding commenced by PJSC Ukrgasvydobuvannya confirmed their agreement to terminate the JAA No. 3, Misen Energy AB (publ) believes that control over the specific assets under the JAA No.3 no longer exists when preparing the annual accounts as for 31 December 2017. This negatively affects Misen Energy AB (publ) conslidated results as was previously reported.
  • Accumulated earnings per share for 12М 2017 are SEK -3.95.

Key events during 12M 2017: 

  • On 5-8 December 2017, the disputing parties to an arbitration proceeding commenced by PJSC Ukrgasvydobuvannya attended the hearing held in accordance to the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce. The parties maintained their claims and counterclaims as previously reported.
  • In July 2017, Misen Energy AB (publ) closed the sale of 8% of the shares and shares capital in Misen Enterprises AB to Powerful United Limited. The purchase sum amounted to MEUR 3 (KSEK 28,739) and was paid by Powerful United Limited taking over Misen Energy AB (publ) existing debt plus cash payment amounting to MEUR 1.85.
  • In November 2017, Misen Energy AB (publ) closed the sale of 2% of the shares and shares capital in Misen Enterprises AB to PUL. The purchase sum amounted to MEUR 1.0 (KSEK 9,889). As a result, Misen Energy AB (publ) secured short term financing for the Swedish operation.
  • In September 2017, PJSC Ukrgasvydobuvannya submitted criminal complaint to the National Anticorruption Bureau of Ukraine ( “NABU”). NABU finished its pre-trial investigation and in October 2017 submitted a statement claim to the Commercial Court of Kiev. NABU requested the court to invalidate the Amendment No.4 to the JAA No.3 and the agreement for the provision of services on production, collection, treatment and transportation of natural gas, oil and gas condensate that LLC Karpatygaz in its capacity as Operator of the Joint Activity concluded with PJSC Ukrgasvydobuvannya in April 2011. In October 2017, the court suspended the proceeding until May 2018.
  • In accordance to the lease agreements concluded in May 2017, LLC Karpatygaz in its capasity as Operator of the Joint Activity transferred the BCSs to the use until 30 April 2018 to PJSC Ukrgazvydobuvannya. 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 extracted during 12M 2017 to the JA (since June 2017 excluding incremental production of natural gas related to leased BCSs).
  • In August 2017, the Kyiv Court of Appeal obliged PJSC Ukrgazvydobuvannya to deliver hydrocarbons produced by the JA from December 2016 to April 2017. However, PJSC Ukrgazvydobuvannya appealed the ruling before the Supreme Court of Ukraine. The proceeding was halted until the court issues a ruling in the proceeding initiated by NABU.
  • In August 2017 and November 2017 the court hearings in Sberbank Leasing cases were held. The court set the dates for the hearings in March and June 2018.

12M 2017 (12M 2016): 

  • Consolidated operating group loss/income: KSEK -1,071,529 (18,832)
  • Consolidated group net turnover: KSEK 35,549 (675,340)
  • Earnings per share: SEK -3.95 (-0.05)
  • Production of natural gas: 0 million cubic meters (596.6)

Key events after end of 12M 2017: 

  • On 24 Janaury 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.
  • 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 related to leased BCSs).
  • As of publishing of this report, PJSC Ukrgasvydobuvannya failed to make the lease payments 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. Owning (the remaining) 52.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 52.5% 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 10:00 CET on 28 February 2017.

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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