Misen Energy AB (publ) denies criminal allegations of the Ukrainian authorities
On 26 October 2016 Pechersk District Court in Kyiv issued an order barring the sale or transfer of engineering equipment for oil and gas production owned by the Participants to Joint Activity under Joint Activity Agreement No. 3 of 10.06.2002, as amended and restated (the “JAA”). The court prohibited LLC Karpatygaz, a partially owned subsidiary of Misen Energy AB (publ), from disposing in any manner of that equipment. The court ruling does not impose any restriction on the use of the assets of the Joint Activity. LLC Karpatygaz continues performing its obligations and, thus, implementing joint activities in Ukraine in accordance to the JAA. LLC Karpatygaz intends to appeal against the court ruling in the Court of Appeal in Kyiv city.
The order was issued in the context of a criminal investigation initiated by a complaint filed by Public Joint Stock Company Ukrgasvydobuvannya (“Ukrgazvydobuvannya PJSC”) on 5 September 2016. Ukrgazvydobuvannya is a Participant in the JAA and a party to an ongoing arbitration proceeding concerning disputes between it and LLC Karpatygaz and Misen Enterprises AB. Karpatygaz LLC and Misen Enterprises AB consider the allegations of Ukrgazvydobuvannya in the criminal investigation to be ungrounded and deny them in their entirely.
LLC Karpatygaz and Misen Enterprises AB have been always cooperative with the investigation authorities and are ready to evidence the legitimate nature of the joint activities in Ukraine. Market will be updated on the further developments.
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 First North.
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 have been acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement between 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%), the largest producer of natural gas in Ukraine and subsidiary of the National Joint Stock Company Naftogaz of Ukraine. The value of the assets is estimated to be substantially higher than the purchase price for Misen Enterprises AB.
The purpose of the 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 First North under identification ticker MISE.
The Certified Adviser of the company at Nasdaq First North is Consensus Asset Management AB (formerly Thenberg & Kinde Fondkommission 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 15:00 CET on 31 October 2016.