The Joint Activity has recently renewed agreements for the lease of 7 BCS with PJSC Ukrgasvydobuvannya
The following Booster Compressor Stations ("BCS") shall be transferred to the use until 30 April 2019 to PJSC Ukrgasvydobuvannya:
- Khrestyschenska BCS
- Abazivska BCS
- Letnyanska BCS
- Rozpashnivska BCS
- Skhidno-Poltavska BCS
- Svydnytska BCS
- Yuliyivska BCS
PJSC Ukrgasvydobuvannya shall cover all the costs related to operation of the BCSs and make the lease payments to partially pay off the outstanding liabilities to PJSC subsidiary bank of Sberbank of Russia. This, if successfully enforced, would significantly reduce amount of contingent liabilities accounted in the Misen Group balance sheet. The Joint Activity shall pay VAT for these lease payments.
As previously reported, PJSC Ukrgasvydobuvannya failed to pay for the lease of BCSs until 30 April 2018. The recently renewed lease agreements entitle the Joint Activity to unilaterally terminate the lease of the BCSs if PJSC Ukrgasvydobuvannya fails to partially pay off the outstanding liabilities to PJSC subsidiary bank of Sberbank of Russia.
Management will provide an update in the event of any new development in this respect.
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 and in July 2017 Misen Energy AB (publ) sold respectively 37.5% and 10% of Misen Enterprises AB shares to the Hong Kong based company Powerful United Limited. In March 2018, Misen Energy AB (publ) sold 2% of Misen Enterprises AB shares to Mr. Konstantin Guenevski. Owning (the remaining) 50.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 50.5% 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 11:00 CET on 18 June 2018.