Pressrelease 2013-06-26
Misen Energy to experience challenges with sales of natural gas in Ukraine; will store 50% of its production till mid October; end year result is expected not be affected.
On June 19, Ukrainian Cabinet of Ministers passed an order obliging all private gas producers to store 50% of produced natural gas till the heating season begins in late fall. The order will be in effect from July 1 till October 15. During this period half of the natural gas produced by Misen Energy AB will be placed in the underground storage. Misen expects that most of the stored volumes will be sold from October 15 until the year end.
The Ministry of Energy and Coal Industry of Ukraine explains this by technical reasons of depleting gas storages and need to stabilize gas deliveries.
Over the last few months Misen Energy AB and its subsidiary in Ukraine have been experiencing some challenges related to the sales process of locally produced natural gas. All natural gas produced, transported, stored and allocated to final consumers, is registered on a monthly basis by Ukrainian State bodies in the gas balancing process. Lately certain challenges have been observed in regards to this procedure and payments for the natural gas produced in the second quarter have been partially delayed.
Most of the issues for April and May have been resolved and all reasonable efforts are made to find solid solutions for June. As it has been reported at the AGM, Misen's production during the Q1 of 2013 has been higher than estimated and the end result for 2013 could be better than foreseen if the sales activities and payments for the gas normalize and most of the stored gas is sold within 2013.
For further information please contact:
Tore I. Sandvold, CEO
tel + 46 31 759 50 72
mobile + 46 709 45 48 48
e-mail info@misenenergy.se
Misen Energy AB (former Svenska Capital Oil AB) 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, which will provide the company with essential gas and oil assets. 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 and Karpatygaz and Ukrgazvydobuvannya, 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( former Svenska Capital Oil 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.misenenergy.se.