Cadogan Petroleum Operations Update
22 December 2015 - 11:29PM
UK Regulatory
TIDMCAD
CADOGAN PETROLEUM PLC
Operations Update
Cadogan Petroleum plc ("Cadogan" or the "Company"), an independent oil and gas
exploration, development and production company with onshore gas, condensate
and oil assets in Ukraine, is pleased to provide an update on its operations.
Exploration & Production Business
Production has continued throughout 2015 from Debeslavetska and Cheremkivska
(gas) and Monastyretska (oil) licences in Western Ukraine and was 122 boepd
(net) at the end of November 2015.
Management is of the opinion that the current in-house estimation of reserves
and resources, set out in the table below, may conservatively represent the
potential of some of the Western licences and has requested a third party
independent evaluation of reserves and resources of its entire portfolio. The
report is expected to be delivered in the coming weeks. The Company will make
an announcement with regard to this update in due course.
In Eastern Ukraine, the Company continues to progress the renewal of the
Pirkivska and Zagoryanska licences which are pending approval by the Ukraine
authorities. The Company has developed an exploration work programme involving
multiple well re-entries across its three licences in Eastern Ukraine, via a
profit sharing agreement with local contractors.
Reserves & Resources (MMboe)
(gross)
Licence Type Working Area Current 3P 2C Best
interest (km2) net reserves contingent estimate
production resources prospective
(boepd) resources
Eastern Pokrovska Conventional 70.0 50 - 2.6 - 73.6
Ukraine gas
Pirkivska Conventional 100.0 72 - 11.3 6.6 67.9
gas
Zagoryanska Conventional 100.0 50 - 1.6 2.2 -
gas
Western Monastyretska Conventional 99.8 26 48 2.7 - 3.0
Ukraine oil
Debeslavetska Conventional 99.2 27 66 0.8 - -
(prod.) gas
Debeslavetska Conventional 99.2 218 - - - 1.0
(exp.) gas
Cheremkhivska Conventional 54.4 119 8 0.2 -
gas
Bitlyanska Conventional 99.8 390 - - 1.2 66.6
oil
Slobodo Conventional 100.0 101 - - - 8.0
Rungurska oil
Total 1,052 122 19.2 10.1 220.0
The Sloboda-Rungurske and Pokrovska licences, both at the exploration stage and
without production, have been suspended by the Ukraine petroleum authority for
two breaches of licence commitments. Cadogan is of the opinion that the
licenses have been properly managed and that the breaches claimed have not
occurred, and has submitted supporting evidence of its position as well as the
prescribed documents to the authority. Cadogan expects the suspensions to be
revoked in due course.
Gas Trading & Services Business
The Company's gas trading and services businesses in Ukraine have continued to
perform well with the gas trading business now having sold over 250 million
cubic metres of gas since commencement of trading in 2014. The businesses
combined are expected to substantially supplement the Company's free cash flows
from its upstream operations in 2015 and support its strategy of becoming cash
neutral in 2016.
Strategy Update
The Company continues to assess opportunities to leverage its strong cash
position and take advantage of opportunities in the current oil price
environment to source additional exploration and production assets, in order to
diversify Cadogan's portfolio both geographically and operationally. The
Company's strategy is premised upon:
* Sourcing additional producing assets to cover corporate overheads and
provide free cash flow for exploration activities;
* Complement this with high impact exploration and near term development
assets with further upside; and
* Minimise Ukraine expenditure through a farm-out for carry on legacy
Ukrainian licences.
The Company has also continued to focus on reducing costs during 2015. Combined
with these cost reductions, the cash flows generated from its exploration and
production business, gas trading and services businesses have largely offset
the Company's corporate overheads thus making a substantial step towards cash
neutrality in 2016.
Publication of Presentation
The Company is also pleased to advise that it has today published an updated
Company presentation which is available on its website at:
www.cadoganpetroleum.com
Enquiries:
Cadogan Petroleum plc +380 (44) 594 5870
Guido Michelotti, Chief Executive
Officer
Marta Halabala, Company Secretary
Cantor Fitzgerald Europe +44 (0) 20 7894 7000
David Porter
Sarah Wharry
Disclaimer
This announcement contains certain forward-looking statements. These
statements are made by the Company's Directors in good faith based on the
information available to them up to the time of their approval of this
announcement but such statements should be treated with caution due to inherent
uncertainties, including both economic and business factors, underlying such
forward-looking information. This announcement has been prepared solely to
provide additional information to shareholders to assess the Company's
strategies and the potential for those strategies to succeed. This
announcement should not be relied on by any other party or for any other
purpose.
END
(END) Dow Jones Newswires
December 22, 2015 07:29 ET (12:29 GMT)
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From Apr 2024 to May 2024
Cadogan Energy Solutions (LSE:CAD)
Historical Stock Chart
From May 2023 to May 2024