Ukraine introduces tax reform and raises the subsoil use charge for Joint Activities
Ukrainian Parliament has passed a new tax reform proposed by the Cabinet of Ministers, where among other items, there is introduced an increase of the subsoil use charge for Joint Activities. The law is effective as of 1 January 2015. For the first quarter of 2015, the subsoil use charge is increased from 55% to 60%. For the second quarter it will be increased to 65% and for the third quarter 2015 it will be increased to 70%. The Board of Misen Energy AB (publ) will be addressing this matter and analyzing how it will affect Misen and its investment program at the upcoming Board meeting in February and will inform the market accordingly.
The subsoil use charge is paid monthly on the production volumes of the ongoing month. Charge is based on the price level set monthly by the Ukrainian State body National Commission for State Energy and Public Utilities Regulation.
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 Stockholm 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 Stockholm First North is Consensus Asset Management AB (formerly Thenberg & Kinde Fondkommission AB).
For further information, please visit our website www.misenenergy.se.