Cadogan Confirms Possible Takeover of Ascent

Ukraine-based Cadogan Petroleum confirmed March 29 that it has made a “highly preliminary approach regarding a possible combination with Ascent.” AIM-listed Ascent’s share price rose sharply soon before the Easter break, prompting it to make a statement regarding Cadogan, and at time of press was up by some 170% on the week.

Under UK stock market rules Cadogan has until 17.00 on April 21 either to announce a firm intention to make an offer or announce that it does not intend to make an offer. This deadline can be extended with the consent of the UK Takeover Panel.

“Further details cannot be provided at this stage due to the highly preliminary status of events.  Further announcements will be made as soon as the need arises,” Cadogan said.

Reacting to the share price rise, Ascent said last week that it had received a preliminary approach from Cadogan that may or may not lead to an offer being made for the entire issued and to be issued share capital.

Cadogan says it has significant working interests in 11 licence areas covering 14 fields in Ukraine with a combined area of about 1150 km².

On its website, Ascent says it "firmly believes that the gas field at Petisovci in Slovenia is the company’s outstanding prospect and therefore intends to focus its resources on this project. The company’s strategy is therefore to allocate the bulk of its available funding to bringing Petisovci into production." 

On March 21, Ukraine-focused JKX Oil and Gas similarly said it would direct more of its effort to gas prospects in Hungary and Slovakia , so inside the EU, because of economic 'fragility' in Ukraine.

William Powell