Cadogan Petroleum Operational Update

 
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    [phone] 
 
Ben Harber                 Company Secretary          [phone] 
 
Cantor Fitzgerald Europe 
 
David Porter                                          [phone] 
 
Nick Tulloch 
 
 
 
END 
 

(END) Dow Jones Newswires

January 16, 2019 02:00 ET (07:00 GMT)