Cadogan Petroleum Operational Update
January 16 2019 - 1:00AM
UK Regulatory
TIDMCAD
Press Release
16 January 2019
This announcement is deemed to contain Inside Information as defined under
the Market Abuse Regulations n. 596/2014
Cadogan Petroleum Plc
("Cadogan" or the "Company")
Cadogan Petroleum plc ("Cadogan"), an independent, diversified oil & gas
company listed on the main market of the London Stock Exchange, is pleased to
provide the following operational update.
Exit net production in December was 274 boepd. Net production for 2018 averaged
250 boepd, which is approximately 25% above the production target announced for
the year and 61% higher than the average production in 2017. The net average
2018 production result is despite the Cheremkhivske gas field being shut-down
in May, due to the award of the extension of the production license being
delayed.
The increase in 2018 production was again delivered in an incident free working
environment and with a further reduction of emissions into the atmosphere.
Emissions reduced from 24.1 tons of CO2,equiv/boe in 2017 to approximately
16.2 CO2,equiv/boe in 2018. In absolute terms, 2017 emissions were exceeded by
only 118 tons of CO2,equiv, notwithstanding the 61% increase in production and
the resumption of drilling operations.
Production was sold at an average price of 52 $/boe, which was 10 $/boe higher
than in the previous year and generated (unaudited) revenues of $4.8 million,
being a 98% year on year increase. Aggregated revenues from production, gas
trading and the Company's oil service business in 2018 is expected to be
marginally lower than in the previous year, owing to lower volumes of gas
traded. The Company also recovered additional cash from previously impaired
items.
During the year, the Company worked to secure its two key licenses in the West
of Ukraine. Following the drilling on time and budget, well Vovche-2 on the
Bitlyanska license is being monitored and prepared for flow tests in order to
assess whether it is a good candidate for pilot production, thus completing the
original work program of the exploration phase.
The Blazh-10 well on the Monastyretska license spudded in early January 2019
and drilling is ongoing; the first casing has already been set at about 400
meters depth. Spudding of the well occurred later than expected due to an
extended test program at the rig's previous location in Poland. The Blazh-10
well is targeting the Yamna sandstones, which is the reservoir of the three
producing wells on the license, at a depth of approximately 3,500 meters. The
well is anticipated to take approximately three months to drill and fulfills
the remaining license commitment, with the commitment for pilot test production
already met.
Cadogan is also pleased to confirm that the customary approvals required to
execute the transaction announced on November 12, 2018, have been granted.
Cadogan has received $1.715 million from Eni and is finalizing the assignment
of its interest in the Debeslavetska and Cheremkhivsko-Strupkivska gas licenses
to Wetstgasinvest LLC, which is now a wholly owned subsidiary of Nadra Ukrayny.
The Company has also continued to screen selective and value accretive
investment opportunities, which would make use of its cash while geographically
diversifying its portfolio.
Guido Michelotti, Cadogan Petroleum CEO, commented:
"2018 represents an important milestone in the transformational journey of
Cadogan. Years of successful effort to asses and extract the value of its
legacy licenses, to re-engineer its organization and to monetize previously
impaired items have reshaped Cadogan and reset its foundations. The Company has
refocused on the West of Ukraine and can look with confidence to a future as a
profitable operator with a positive operating cash-flow"
-ENDS-
For further information, please contact:
Cadogan Petroleum plc
Guido Michelotti Chief Executive Officer +380 (44) 594 5870
Ben Harber Company Secretary +44 0207 264 4366
Cantor Fitzgerald Europe
David Porter +44 (0) 20 7894 7000
Nick Tulloch
END
(END) Dow Jones Newswires
January 16, 2019 02:00 ET (07:00 GMT)
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From Jul 2023 to Jul 2024