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 |
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Guido Michelotti |
Chief Executive Officer |
+380 (44) 594 5870 |
Ben Harber |
Company Secretary |
+44 0207 264 4366 |
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|
Cantor Fitzgerald Europe |
|
|
David Porter |
|
+44 (0) 20 7894 7000 |
Nick Tulloch |
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