Cadogan Petroleum plc, an independent, diversified oil & gas company listed on the main market of the London Stock Exchange (LSE), has announced an agreement has been reached with Ukrinvest Group for the sale of Gazvydobuvannya LLC for US$2.8 million.

"The sale of Gazvydobuvannya LLC is part of Cadogan's goal of building a platform for growth in Ukraine through the prudent use of its cash resources and the monetization of its legacy assets. The first step of our production growth was delivered through the re-entry of old wells, requiring minimal capital deployment," Guido Michelotti, CEO of Cadogan Petroleum plc, was quoted as saying in a statement posted by the company on the London Stock Exchange and on its website on October 1.

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"The second step has been achieved by the success of well Blazh 10, a substantial portion of which will be self-financed through the sale of this company," the statement said.

Gazvydobuvannya LLC is one of two wholly owned subsidiaries, based in the East of Ukraine, which does not hold licenses or physical assets and which management has been actively seeking to sell.

Cadogan is an independent, diversified oil and gas company, which operates exploration and production licenses in Western Ukraine, conducts gas trading operations, and provides services to E&P companies.