Cadogan Petroleum interims confirm solid and robust financial position

Cadogan Petroleum PLCs (LON:CAD) interim results confirmed a solid balance sheet and robust, cash generative operations in Ukraine despite a number of shut-ins and suspensions.

It ended June with US$11.6mln of cash, which the company confirms is sufficient to continue operations for the foreseeable future.

Production for the six month period averaged 230 barrels of oil per day, down from 297 in the comparative period last year due to the Blazhiv-3 and Blazhiv-Monastyrets-3 wells being offline for over five months.

READ: Cadogan restarts two production wells in Ukraine

At the same time, the company has been impacted by a sharp drop in realised prices over the period – for the six months the average realised oil price was down 33%, gas prices fell further though gas sales were previously halted to preserve reserves until prices improve.

Cadogan highlighted that it completed the half without any lost time incidents and had no cases of COVID-19 among its employees.

It noted that it has continued to monitor the protection of its interests in Proger Ingegneria, an Italian services firm, and plans to convert a loan into a direct 33% equity interest. It recently received and is presently analysing legal and financial information communicated by Proger relating to its activities in 2019.

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