Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in CAD?
Cadogan Petroleum: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Cadogan Petroleum takes “another step towards overall profitability”

“The increase in production levels is due to successful work-overs and the implementation of production optimisation programs,” Cadogan said
oil and gas operations
INVESTMENT OVERVIEW: CAD The Big Picture
Production was up 34% in 2017

Cadogan Petroleum PLC (LON:CAD) told investors that it has ‘delivered another step towards overall profitability’.

The Ukraine-focussed oil and gas firm, in a statement, highlighted that it is benefiting from E&P revenues, reductions in administration costs, as well as strict discipline on spending and management of receivables.

WATCH: Cadogan Petroleum more than doubles production revenue in first half

Averaging 167 barrels oil equivalent per day in 2017, gross production increased by 34% compared to the previous year - net production measured 155 boepd - and the exit rate at the end of December was 190 boepd gross and 176 boepd net.

“The increase in production levels is due to successful work-overs and the implementation of production optimisation programs,” Cadogan said in the statement.

“Combined, these operations increased oil production from the Monastyretska field by 78% and kept gas production constant, despite the high level of depletion from the two producing fields.

“The increase in oil production from the Monastyretska field was achieved by re-entering old suspended wells, rather than drilling new ones. This approach delivered the targeted increase in oil production, while minimising cash outflow and as such only marginally impacted the Company’s cash position.”

The company also noted that its gas trading business had “a good year” driven by a new team and a number of opportunistic sales.

Giving its outlook for 2018, Cadogan said it expects production to exceed 200 boepd as it continues to implement production enhancement.

Additionally, the company said that two wells are planned within the next 12 to 18 months. One will be a shallow well on the Borynya licence, to test new prospects, and the other will be an appraisal well on the Monastyretska oil field.

READ: Cadogan Petroleum chief buys shares with his bonuses

The company also noted that at the Cheremkhivsko-Strupkivska licence, which is due to expire in May, the operator has filed an application to extend for 10 more years.

It added: “As E&P activity in Ukraine picks up, Cadogan also intends to actively explore opportunities to spin-off its E&P services subsidiary.

“The management team is currently reviewing several potential opportunities for further investment outside Ukraine.

“The team intends to continue to actively pursue these and other opportunities that arise to utilize the preserved cash.”

View full CAD profile View Profile

Cadogan Petroleum Timeline

Related Articles

Checking oil samples in front of tanks at Ungani project
May 07 2018
Cash on hand should gain momentum as production increases towards the target rate of 3,000 bopd.
Green energy
April 10 2018
PowerHouse Energy has been busy over the past year, establishing its demonstration plant in the UK, signing deals to develop a hydrogen bus, and even trialling its technology in Qatar ahead of the 2022 FIFA World Cup
Exploration oil well
November 24 2017
The company has exploration and development upside with its suite of North African oil assets

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use