Cadogan Petroleum: Half-yearly Report 2013
Cadogan Petroleum plc, an independent oil and gas exploration, development and production company with onshore gas, condensate and oil assets in Ukraine, announces its unaudited results for the six months ended 30 June 2013.
*Continued production from the Debeslavetska and Cheremkivska licences at a combined rate of about 14.5 mcm/day of gas and on Blazhiv field of the Bitlyanska licence about 20 bopd of oil.
*Cadogan’s shale gas joint venture Westgasinvest (“WGI”) is implementing then procurement and permitting with a view to field activity in last quarter 2013/first quarter 2014.
*Borynya 3 well re-entry is on-going; logs run and confirm the presence of interesting gas bearing zones. Three promising intervals have been identified for testing.
*Memorandum of understanding (“MoU”) with Oil and Gas Management Services Limited (OAGSG), the largest Oil Country Tubular Goods (“OCTG”) business operator in Kurdistan, to assist Cadogan in developing a presence in the Kurdistan region and further develop respective, existing services businesses in Ukraine and Kurdistan.
*Negotiations on-going with major International Oil Companies (“IOCs”) operating in Ukraine, offering state-of-the-art technologies and services.
*$29.5 million received in full and final settlement of the GPS litigation.
– Net cash and cash equivalents at 30 June 2013 of $63.4 million (31 December 2012: $40.5 million) excluding $0.7 million (31 December 2012: $1.9 million) of Cadogan’s share of cash and cash equivalents in joint ventures
Commenting on the results, Bertrand des Pallieres Chief Executive Officer said:
“The first half of 2013 has been broadly positive for Cadogan with settlement of the GPS litigation, the MOU with OAGSG, progress with our shale gas JV and completion of the overhaul of the Group’s technical team. The Company remains in a strong financial position, with no debt and substantial cash resources already being put to work at Borynya 3 with, so far, promising results.”
