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LONDON (Alliance News) - Cadogan Petroleum PLC said Tuesday its loss in the first half of the year substantially narrowed due to higher prices, tighter control over expenses, and increased production.
In the six months to June 30 the oil and gas exploration company's pretax loss shrunk to USD422,000, less than a quarter of the USD1.9 million loss recorded the year before.
Cadogan's production revenue doubled to USD2.1 million from USD1.0 million as production volume grew 57% and average realised price climbed 34% year-on-year.
However, as gas trading revenue dropped to USD3.1 million from USD3.9 million, the company's overall revenue increase was a more modest 6%, to USD5.3 million from USD5.0 million.
The company reduced its administrative expenses to USD2.0 million from USD2.7 million.
At present, Cadogan's main assets are in the Ukraine and the company has experienced some difficulties with the country's new oil & gas regulations regarding environmental impact assessments. Moreover the company is also dissatisfied with the royalty payments for its gas operations, describing this system as a "punitive royalty regime".
"The position of Cadogan remains solid, with the resources and competences necessary to continue monetizing the value of its Ukrainian assets while pursuing opportunities outside of Ukraine to generate long term value for its shareholders," said Cadogan.
"The results delivered in the first half of the year provide the management team with added confidence that Cadogan can be brought to profitability after many years of losses," the company added.
Shares in Cadogan were untraded at 8.25 pence on Tuesday.
