Information from Interim report January - March 2017 Misen Energy AB (publ)

Following is a summary of the financial information given in Interim Report January - March 2017 from Misen Energy AB (publ) published today. The complete report is available in both English and Swedish on the Company's website: http://misenenergy.se/repository/Financial_reports_ENG/Misen_Energy_Q1_2017_ENG.pdf

Summary of results:

• Since December 2016 PJSC Ukrgasvydobuvannya has continued, as the Company believes, manifestly unlawful actions and refused to provide services in respect of production, collection, treatment and transportation of natural gas, gas condensates, oil and LPG to the JA. These actions resulted in zero production levels in January-March 2017 and, therefore, prevented sales of hydrocarbons by JA.
• Accumulated earnings per share for January – March 2017 are negative.

Key events during January-March 2017:

• The Government of Ukraine continued to impose a 70% subsoil use charge for enterprises established under Joint Activity Agreements. This has been done in accordance with the laws adopted in late 2014.
• In January-March 2017 District Court in Kyiv arrested the booster compressor stations (BCSs) that form part of the JA’s assets. The court ruling prevented LLC Karpatygaz, a partially owned subsidiary of Misen Energy AB (publ), from operating the BCSs and obliged to transfer the BCSs to PJSC Ukrgasvydobuvannya, wholly owned by the Ukrainian State. In March 2017, the court partially sustained appeal submitted by LLC Karpatygaz and annulled the ruling to the extent it obliges LLC Karpatygaz to transfer the BCSs to PJSC Ukrgasvydobuvannya for safe keeping.
• Due to financial constraints imposed by the increased subsoil use taxation as well as PJSC Ukrgasvydobuvannya, as the Company believes, manifestly unlawful actions, Misen Group almost completely halted investments into the development program in January-March 2017.
• Misen Enterprises AB and LLC Karpatygaz participate in an arbitration proceeding commenced by PJSC Ukrgasvydobuvannya in August 2016 under the JAA No. 3 (as amended and restated). In February 2017 Misen Enterprises AB and LLC Karpatygaz received Statement of Claim from PJSC Ukrgasvydobuvannya.

January – March 2017:

• Consolidated operating group loss: KSEK -26,654 (28,578)
• Consolidated group net turnover: KSEK 3,854 (207,490)
• Earnings per share: SEK -0.13 (-0.09)
• Production of natural gas: 0 million cubic meters (153)

Key events after end of January-March 2017:

• In May 2017 the JA and PJSC Ukrgasvydobuvannya renewed the terms of the Khrestyschenska BCS lease agreement. In addition, Joint Activity was forced to sign long-term lease agreements with UGV what regards lease of the remaining 6 booster compression stations.
• As of publishing of this report, PJSC Ukrgazvydobuvannya refused to provide services in respect of production, collection, treatment and transportation of hydrocarbons extracted since December 2016 till May 2017 to JA.
• In May 2017 Misen Enterprises AB and LLC Karpatygaz submitted their Statement of Defence and Counterclaim within the arbitration proceeding commenced by PJSC Ukrgasvydobuvannya.
• In May 2017 the Company signed a loan agreement with Powerful United Limited for a loan of MEUR 1 with a fixed loan fee KEUR 150.

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 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 PJSC Ukrgasvydobuvannya (49.99%), a subsidiary of the National Joint Stock Company Naftogaz of Ukraine. PJSC 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 Misen Energy AB (publ) sold 37.5 % of Misen Enterprises AB shares to the Hong Kong based company Powerful United Limited. Owning (the remaining) 62.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 62.5% 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 under identification ticker MISE. The Certified Adviser of the company at Nasdaq First North is Erik Penser Bank AB.
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 08:00 CET on 31 May 2017.