Source: Misen Energy AB (publ.)
As it has been previously reported, gas produced and delivered for the Joint
Activity by Misen Energy AB’s (publ) daughter company LLC Karpatygaz, has been
arbitrarily excluded from the gas balancing process, making it impossible for
LLC Karpatygaz to sell gas and receive income. The situation continues in 2014,
where the growing uncertainty with the gas balance and general ambiguity in
Ukraine could impact financial situation of Misen Energy AB (publ).
The Board and the Management is working on finding solutions. As part of the
efforts, Misen Energy AB (publ) has submitted to Ukraine a Notice of Investment
Dispute under the Agreement between the Government of Ukraine and the Government
of the Kingdom of Sweden concerning the Promotion and Reciprocal Protection of
Investments (hereinafter “BIT”). This was preceded by a letter sent in late
November 2013 to the Minister of Energy and Coal Industry of Ukraine asking for
assistance in clarifying the situation. No response has been received from
Ukraine, therefore by the Notice of Investment Dispute submitted on January 13,
2014, Misen Energy AB (publ) applies to the Government of Ukraine pursuant to
Article 8(1) of the BIT, asking for the settlement negotiations. If the problems
described in the Notice of Investment Dispute cannot be settled within six
months, Misen Energy AB (publ) reserves its right to submit the dispute for
international arbitration in accordance with the BIT.
To address a possible impact to the financial situation of Misen Energy AB
(publ), the Board is exploring possibility of calling for EGM where the issues
and proposed solutions will be presented to the shareholders. More detailed
information regarding this matter will be released shortly.
For further information, please contact:
Göran Wolff, MD
Direct line: +46 31 759 50 72
Mobile: +46 709 45 48 48
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 NasdaqOMX First North.
In 2011, Misen Energy AB (publ) acquired Misen Enterprises AB and its Ukrainian
subsidiary, Karpatygaz LLC, including the rights of 50.01% of the revenue and
profit from a gas production project in Ukraine. In consideration of this
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 Karpatygaz LLC (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
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 NasdaqOMX First North is Thenberg &
Kinde Fondkommision AB.
For further information please visit our web site www.misenenergy.se.