PJSC Ukrgazvydobuvannya jeopardizes sale of hydrocarbons owned by the Joint Activity
Since October 2016 PJSC Ukrgazvydobuvannya refused to deliver the natural gas, oil volumes and gas condensate extracted from the wells being the Joint Activity (the “JA”) facilities under the JAA No.3 of 10 June 2002, as amended. In October and November 2016, the Ukrainian National Gas Pipeline Operator confirmed the ownership rights of the JA for the hydrocarbons and, therefore, the JA continued to sell them. However, as of 3 January 2017, it is uncertain if the JA could sell hydrocarbons extracted in December 2016. Being prevented from selling the hydrocarbons, LLC Karpatygaz, a partially owned subsidiary of Misen Energy AB (publ), could not properly implement the JAA No.3 and pay taxes to Ukraine.
Management continues monitoring situation and will inform the market accordingly.
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 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 Misen Energy AB (publ) sold 37.5 % of Misen Enterprises AB shares to the Hong Kong based company Powerful United Limited. Owning (the remaining) 62.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 62.5% 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 09:00 CET on 3 January 2017.