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LONDON (Alliance News) - Cadogan Petroleum PLC on Wednesday reported a swing to profit for 2018 on improved oil output and pricing.
The oil and gas company recorded production of 91,085 barrels of oil equivalent in 2018, up 61% from 56,516 barrels of oil equivalent produced a year prior, boosted by more than doubled output from the key Monastyretska licence, located in west Ukraine. Improved oil production from the Monastyretska licence was driven by a successful work-over and stimulation campaign on the three producing wells, the company said.
Average net production in 2018 in west Ukraine was 250 barrels of oil equivalent a day, a 61% increase over the production of the previous year. Average realised price in 2018 increased to USD51.3 per barrel of oil equivalent from USD41.6.
Gas production remained stable until the Cheremkhivsko-Strupkivska licence suspension in May 2018, Cadogan said.
Revenue from production almost doubled in 2018 to USD4.7 million from USD2.4 million the year before, mainly due to production volume increases and improved pricing. The gas trading business delivered revenue of USD9.1 million, down from USD11.4 million in 2017.
"Gas operations, which had become unprofitable, have been relinquished and the company will concentrate on the conversion of its two licences and on its oil operations, which is where the value is focused within the current portfolio," said Chief Executive Guido Michelotti.
Overall, revenue declined in 2018 to USD14.7 million from USD15.2 million the year prior, but the company managed to swing to pretax profit of USD1.0 million versus GBP2.9 million loss.
"The company intends to build on the results of 2018 to continue delivering solid operational and financial performance," Michelotti said.
Cadogan shares were trading 6.1% lower on Wednesday at 12.44 pence each.