Britain's diversified oil & gas company with assets in Ukraine Cadogan Petroleum has reached an agreement with Ukrinvest Group for the sale of Gazvydobuvannya LLC for a total consideration of $2.8 million, the company has said on the website of the London Stock Exchange (LSE).

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, the company said.

"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. 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," CEO of Cadogan Petroleum Plc Guido Michelotti said.

Cadogan is engaged in the development of the Debeslavetske and Monastyretske deposits.

Gazvydobuvannya LLC was established in 2001, and has been a member of Cadogan Petroleum Plc since 2006.

Ukrinvest Group LLC was registered in 2008 using MGI Enterprise Inc. (Belize), the ultimate beneficiary is Viktoria Perchenko. The company also supplies natural gas to non-households.