Poltava Regional Council has not approved a license to use the Zahorianske oil and gas field for Cadogan Petroleum, the company has said on the London Stock Exchange (LSE).

The company said that this rejection, which follows an earlier request of resubmission due to legislative change in the award process, comes three years after the original filing.

"Cadogan has reviewed the available options and decided it is not in the company’s interest to challenge this rejection or re-submit the same application again. The company retains the option of submitting a new application in the future and/or of participating in an auction. Cadogan also maintains the ownership of the wells, which could be rented to a new license owner, if the licenses are awarded in the interim," the company said.

As reported, Cadogan increased production by 6% in 2016, to 116 barrels of oil equivalent per day (boepd).