The two partially owned subsidiaries of Misen Energy AB (publ) received the Request for Arbitration from PJSC Ukrgasvydobuvannya
Misen Enterprises AB and LLC Karpatygaz, the two partially owned subsidiaries of Misen Energy AB (publ), received the Request for Arbitration from the Public Joint Stock Company Ukrgasvydobuvannya (“PJSC Ukrgasvydobuvannya”) on 18 July 2016. PJSC Ukrgasvydobuvannya submitted the Request for Arbitration to the Arbitration Institute of the Stockholm Chamber of Commerce and requests termination of Joint Activities Agreement No. 3 dated 10 June 2002 (as further amended) between PJSC Ukrgasvydobuvannya, LLC Karpatygaz and Misen Enterprises AB.
The two partially owned subsidiaries of Misen Energy AB (publ) have previously notified PJSC Ukrgasvydobuvannya that a dispute had arisen between them, therefore, the claims of PJSC Ukrgasvydobuvannya and the subsequent Request for Arbitration were anticipated. Karpatygaz LLC and Misen Enterprises AB will participate in the arbitration proceeding and will vigorously defend the legitimate interests of their investors. In accordance to the SCC statistics for 2015 (http://www.sccinstitute.com/statistics/), the majority of the SCC cases were completed within 6-12 months from the date of registration of a case with the SCC.
This arbitration proceeding has no immediate impact on Misen Enterprises’ AB and LLC Karpatygaz’s business in Ukraine. Misen Energy AB (publ) will constantly update the market on the further developments of the arbitration proceeding.
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 09:40 CET on 21 July 2016.