Proactive Investors - Run By Investors For Investors
Why invest in CAD?
Cadogan Petroleum PLC: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Cadogan Petroleum ticks right boxes as production picks up

Production in the six months to June rose 64% following a workover campaign on the three producing wells
oil well
INVESTMENT OVERVIEW: CAD The Big Picture
Cadogan has a number of assets in Ukraine

Cadogan Petroleum PLC’s (LON:CAD) key metrics moved in the right direction in the half year to June.

The Ukraine-focused oil and gas firm has targets of boosting production, lowering administrative expenses, raising earnings, reducing emissions and diversifying the portfolio.

Production in the six months to June rose 64% following a workover campaign on the three producing wells of the Monastyretska licence in Ukraine.

Average net production rate over the six months to June 30 was 234 barrels of oil equivalent per day (boepd).

The Monastyretska licence reached an aggregated gross oil production rate of 225 barrels per day (bpd) at the end of the period, up 150% on the level achieved before beginning the workover programme, which was completed on time and on budget.

Traded volumes of gas were slightly lower but cost savings initiatives improved this area of business. 

Oil price recovery lifts revenues 

Revenues increased to US$5.3mln from US$5.0bn on the back of higher production and a recovery in oil prices.

Gross profit rose to US$0.6mln from US$0.5mln and the loss before tax narrowed to US$0.4mln from US$1.9mln.

Subsidiary, Astro Service won a multi-well work-over contract with a local operator in Ukraine and the work started in July.

Cadogan, which also holds working interests in the Bitlyanska. Debeslavetska and Cheremkhivska licences in Ukraine, said emissions were further reduced to 15.94 tons of CO2,e per barrel produced, compared to 26.47 tons of CO2,e per boe last year.

In Italy, the company has focused on securing the award of the two licences in the Po Valley and is in talks with newly elected local politicians following May’s election.

Sufficient capital to continue operations 

Cadogan ended the period with net cash of US$41.4mln, up US$3.8mln from the end of last year.

“The directors believe that the capital available at the date of this report is sufficient for the group to continue its operations for the foreseeable future,” the company said.

“The position of Cadogan remains solid, with the resources and competences necessary to continue monetising the value of its Ukrainian assets while pursuing opportunities outside of Ukraine to generate long-term value for its shareholders.” 

Cadogan said it will continue to look at ways to strengthen its balance sheet and keep costs low to improve returns for shareholders.

The group added: “The results delivered in the first half of the year provide the management team with added confidence that Cadogan can be brought to profitability after many years of losses.”

At 8.25p, Cadogan is valued at £19.5mln.

View full CAD profile View Profile

Cadogan Petroleum PLC Timeline

Related Articles

pylon
October 12 2018
Efforts in future will be directed toward the Chennai power plant and OPG’s growing solar capacity
oil rig
November 22 2018
A1 is some 19 kilometres from the Tendrara production concession area and seen as a potential major expansion of its existing discoveries
falcon oil
November 23 2018
Falcon Oil & Gas narrowed its first-half loss as it continued to focus on tight cost control

© 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