Press releases in English
Misen Enterprises AB and LLC Karpatygaz received a Consent Award
Misen Enterprises AB and LLC Karpatygaz, two partially owned subsidiaries of Misen Energy AB (publ), received a Consent Award from the Arbitral Tribunal in the ongoing commercial arbitration proceeding. In accordance to Article 39(1) of the SCC Rules, the Arbitral Tribunal approved and confirmed the Settlement Agreement regarding the settlement of certain legal relations concluded between JSC Ukrgasvydobuvannya, Misen Enteprises AB and LLC Karpatygaz (the “Parties”) on 23 July 2019 (the “Settlement Agreement”). Approval of the Arbitral Tribunal was a necessary condition for the Settlement Agreement to be valid under the applicable law.
Under the Settlement Agreement, all hydrocarbons produced from 1 December 2016 to 10 July 2018 (termination of JAA No.3) from the wells specified in the Joint Activity projects under JAA No.3, and with the use of the booster compression stations, belong to JSC Ukrgasvydobuvannya. A total cost for the use by JSC Ukrgasvydobuvannya of the Parties’ joint property amounts to UAH 1.2 bln. This amount includes all lease payments owed by JSC Ukrgasvydobuvannya to the Joint Activity for the use of the Parties’ joint property from 1 December 2016. JSC Ukrgasvydobuvannya is solely responsible for gas storage costs and any other charges and taxes related to the production, storage and processing costs of the hydrocarbons.
Pursuant to the Settlement Agreement, JSC Ukrgasvydobuvannya shall pay a compensation to Misen Enterprises AB and LLC Karpatygaz for their share of total costs for the use of the Parties’ joint property. The Parties disagree on the size of shares (reflected as percentage) in the joint property under JAA No.3 based on which the compensation shall be calculated. Misen Enteprises AB and LLC Karpatygaz claim that they are entitled to 50.01% of a total costs for the use of the Parties’ joint property. The Parties also disagree on the currency of such compensation to Misen Enterprises AB and LLC Karpatygaz. As a result, the Parties referred these disagreements to the Arbitral Tribunal to decide in a final award. At any event, under the Settlement Agreement, JSC Ukrgasvydobuvannya shall pay the compensation amounts to Misen Enteprises AB and LLC Karpatygaz within thirty calendar days of the date of a final award.
The Settlement Agreement does not regulate and not affect the value of the booster compression stations and/or the value of other fixed assets that are disputed by the Parties in the ongoing arbitration proceeding. Misen Enterprises AB and LLC Karpatygaz are entitled to compensation for their share in that assets in addition to the compensation amounts under the Settlement Agreement. The value of these assets will be determined by the Arbitral Tribunal in a final award.
As previously published, the Arbitral Tribunal plans to issue a final award by 29 May 2020.
For further information, please contact:
Göran Wolff, MD
Direct line: +46 31 759 50 72
Mobile: +46 709 45 48 48
E-mail: goran@misenenergy.se
info@misenenergy.se
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 Growth Market 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 JSC Ukrgasvydobuvannya (49.99%), a subsidiary of the National Joint Stock Company Naftogaz of Ukraine. JSC 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 Growth Market under identification ticker MISE. The Certified Adviser of the company at Nasdaq First North Growth Market is Erik Penser Bank AB, tel.: +46 8 463 80 00, e-mail: certifiedadviser@penser.se.
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 10:00 CEST on 31 March 2020.
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