Kuwait Energy to buy Ukrainian assets

Kuwait Energy Co. plans to purchase the Ukrainian assets of Cardinal Resources PLC, London, for $71 million. Sale includes 100% of the share capital of Carpatsky Petroleum Inc., Raget Commercial Ltd., and Mitre Resources Ltd.

Uchenna Izundu
International Editor

LONDON, Nov. 1 -- Kuwait Energy Co. (KSCC) plans to purchase the Ukrainian assets of Cardinal Resources PLC, London, for $71 million.

Cardinal will sell 100% of the share capital of Carpatsky Petroleum Inc., Raget Commercial Ltd., and Mitre Resources Ltd., each wholly owned by Cardinal subsidiary Cardinal Resources Finance Ltd.

The deal will help Cardinal pay $52 million to an affiliate of Silver Point Capital LLP to pay its debt, and the balance will be used to repay other creditors.

The transaction needs the approval of Cardinal shareholders, and a full contract must be drawn up before it can go ahead.

Cardinal also has agreed to serve as agent for KSCC by entering into a forward sales contract. KSCC will pay Cardinal $600,000 in an agreement for gas and gas condensate sales to begin after February 2008.

Contact Uchenna Izundu at uchennai@pennwell.com.

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