LONDON (Alliance News) - Cadogan Petroleum PLC on Thursday reported a drop in revenue though its loss narrowed and production during 2017 increased.
Revenue for 2017 fell to USD15.1 million compared to USD19.7 million, despite production increasing 33% to 56,516 barrels of oil equivalent. Oil production was up 78% year-on-year, with gas production flat.
The drop in revenue was due to a fall in natural gas trading revenue to USD12.7 million from USD15.6 million. Production and exploration revenue actually increased to USD2.4 million from USD1.6 million.
The company's pretax loss halved to USD2.9 million from USD5.8 million, due to a fall in administrative costs and a net finance gain rather than a finance loss.
It was a "good" year for Cadogan, it said, despite the difficulties in converting its Ukrainian exploration licences at Zagoryanska and Pirkovska into production licences as well the general difficulties in operating in Ukraine due to its confrontation with Russia.
Looking forward, Cadogan said it expects oil production to grow up to 75% year-on-year in 2018 driven by three well workovers at the Monastyretska oil field, and the company is confident going ahead.
Shares were down 4.2% on Thursday at 8.50 pence each.
Cadogan (CAD)