​​​​​​​Information from Interim report January - March 2020 Misen Energy AB (publ)

Following is a summary of the financial information given Interim report January - March 2020 ("Q1 2019") from Misen Energy AB (publ) published today. The complete report is attached and is available in both English and Swedish on the Company's website: http://misenenergy.se/repository/Financial_reports_ENG/Misen_Energy_Q1_2020_ENG.pdf

Results for the January-March 2020 (within brackets same period 2019):

• Consolidated operating group result KSEK 9,665 (-2,981)
• Consolidated group net turnover: KSEK 16,282 (2,895)
• Earnings per share: SEK 0.05 (-0.01)
• Production of natural gas: at zero level (at zero level)

Summary of results:

• Given that the Arbitral Tribunal rendered a final partial award to terminate the Joint Activity Agreement No.3 (the “JAA”), Misen Energy AB (publ) believes that control over the specific assets owed by the Joint Activity (the “JA”) no longer exists. Thus, Misen Energy AB (publ) continues accounting treatment of 50.01% along with Powerful United Limited and Mr Konstantin Guenevski participation interest in the JA under which assets and liabilities are not presented in the financial statements.
• Accumulated earnings per share for Q1 2020 are SEK 0.05.

Key events during Q1 2020:

• In July 2018, the Arbitral Tribunal rendered a Final Partial Award in the arbitration proceeding commenced under the JAA in accordance to the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce. The Arbitral Tribunal fully rejected the JAA’s invalidity arguments, as well as the overwhelming majority of JSC Ukrgasvydobuvannya’s arguments concerning Misen Enterprises AB and LLC Karpatygaz alleged “breaches”. The Arbitral Tribunal concluded that the JAA must be terminated as of 11 July 2018.
• Following the requests of the Arbitral Tribunal, the Arbitration Institute of the Stockholm Chamber of Commerce decided that the Final Award shall be rendered by 29 May 2020.
• On 26 March 2020 the Arbitral Tribunal rendered a Consent Award and confirmed the settlement agreement concluded by JSC Ukrgazvydobuvannya, Misen Enterprises AB and LLC Karpatygaz in July 2019 regarding issues of hydrocarbons produced using JA’s assets from 1 December 2016 to 10 July 2018 (termination of JAA No.3), lease payments for Booster Compression Stations. Total value of the produced hydrocarbons is MUAH 1,200 (MSEK 424). The share of Misen Group in the total value will be determined by the Tribunal in the Final Award. Misen Enterprises AB and LLC Karpatygaz claim that they are entitled to 50.01% share.
• On 12 February 2020, Misen, Powerful United Limited (PUL) and SP Holdings signed an additional agreement to the Financing Agreement dated 28 November 2018 whereby from 1 October 2019 all rights and obligations of SP Holdings Limited deriving from the Loan Agreement have acquired PUL’s Capital Partner’s rights and obligations under the Financing Agreement.
• On 13 March 2020 Misen Energy AB (publ) signed the Financing Agreement with a new financial partner, thus strengthening its financial position in the light of ongoing SCC Arbitration. A new financial partner is the United States based international businessman Mr. Edvardas Jatautas.
• On 11 January 2020 the hearing was held in the court proceeding in Case initiated by National Anticorruption Bureau of Ukraine (“NABU”) based on the criminal complaint submitted by JSC Ukrgasvydobuvannya in 2017. The Kyiv Commercial Court resolved to open the court proceeding.
• On 2 January 2020 the North Economic Court resolved to open appeal procedure initiated by JSC Ukrgazvydobuvannya and appeal procedure initiated by LLC Karpatygaz on 13 January 2020 in the case No. 910/21720/15 against JSC Ukrgasvydobuvannya, LLC Karpatygaz and Misen Enterprises AB initiated by Financial Leasing Center.

Key events after end of Q1 2020:

• The Arbitral Tribunal should render the Final Award by 28 August 2020.
• On 19 May 2020 the Kyiv Commercial Court resolved to open the proceeding in the case No. 910/18439/17 (National Anticorruption Bureau of Ukraine). The court postponed the hearing until November 2020.
• On 20 May 2020, JSC Ukrgasvydobuvannya, Misen Enteprises AB and LLC Karpatygaz signed a Settlement Agreement with Financial Leasing Center LLC. Under the Agreement, Financial Leasing Center LLC shall receive UAH 237,507,020.04 (SEK 85,539,578).

Publication of the Interim report January - March 2020

This Interim report January - March 2020 is published at the Company’s website (http://www.misenenergy.se), and a printed version can be ordered at info@misenenergy.se.

Future reports and events

Next report, the of the Interim report January - June 2020, will be published on 31 August 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 29 May 2020.