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.