Last checked at 12 Apr 2016 10:35
CADOGAN PETROLEUM PLC - Operations UpdateCADOGAN PETROLEUM PLC - Operations Update
PR Newswire
London, April 12
CADOGAN PETROLEUM PLC
Operations Update
12 April 2016
Cadogan Petroleum plc (“Cadogan” or the “Company”), an independent oil and gas exploration, development and production company with onshore gas, condensate and oil assets in Ukraine, is pleased to advise that Brend Vik has completed its re-evaluation of the Company’s reserves and resources in Ukraine.
A summary of the revised reserves and resources as at 31 December 2015 is presented in the table below:
| Reserves & Resources (MMboe) (net to Cadogan) | ||||||||
| Licence | Type | Working interest (%) | Area (km2) | Current net production (boepd) | 3P reserves | 2C contingent resources | Best estimate prospective resources | Expiry date |
| Monastyretska | Oil | 99.2 | 25 | 48 | 4.5 | 0.6 | 0.2 | Nov. 2019 |
| Debeslavetska (Production) | Gas | 99.2 | 27 | 60 | 0.2 | 0.1 | Nov. 2026 | |
| Debeslavetska (Exploration) | Gas | 99.2 | 218 | Sept. 2016 | ||||
| Cheremkhivska | Gas | 54.2 | 119 | 16 | 0.01 | 0.6 | May. 2018 | |
| Bitlyanska | Gas & Condensate | 99.2 | 390 | 3.2 | 14.8 | 4.5 | Dec. 2019 | |
| Slobodo Rungurska | Oil | 100 | 101 | 3.5 | Apr. 2016 | |||
| Pokrovska | Gas & Condensate | 70 | 50 | 0.8 | 14.7 | 0.6 | Aug. 2016 | |
| Total current licences | 930 | 124 | 8.7 | 30.1 | 9.5 | |||
| Pirkovska | Gas & Cond | 100 | 88 | 12.7 | 6.2 | 5.0 | *Expired | |
| Zagoryanska | Gas & Cond | 100 | 34 | 1.6 | 2.6 | **Expired | ||
| Total licences subject to renewal | 122 | 14.3 | 8.8 | 5.0 | ||||
| Total | 1,052 | 124 | 23.0 | 38.9 | 14.5 | |||
| * Application for 20 year production licence filed ** Application for a 20 year production licence filed by Cadogan only (100% P.I.) as Eni elected not to do so |
The evaluation has broadly confirmed the Company’s 1P reserves at 0.4 MMboe and has identified 3P reserves and 2C contingent resources which are significantly greater than Management estimates as notified on 22 December 2015 (and detailed in Appendix A). This increase is primarily concentrated in the Monastyretska and Bitlyanska licenses in Western Ukraine. This is offset by a downward revision of the best estimate prospective resources across the portfolio which is primarily concentrated in the three Eastern Ukraine licenses. This downward revision is principally a result of the low oil price environment and a more conservative interpretation of the available geological and geophysical data.
In conjunction with this update, the Company is pleased to advise that it has today published an updated Company presentation reflecting the revised figures which is available on its website at: www.cadoganpetroleum.com
Guido Michelotti, CEO, commented:
“We are pleased with the significant upward revision of the Monastyretska and Bitlyanska reserves against previous management estimates, which will prolong the life of the Company’s producing fields and provide access to further production upside. Cadogan intends to work towards exploiting this upside while maintaining our focus on exercising financial discipline, in order to preserve our cash resources for further growth opportunities in the current oil price environment.”
Enquiries:
| Cadogan Petroleum plc | +380 (44) 594 5870 |
| Guido Michelotti, Chief Executive Officer Marta Halabala, Company Secretary | |
| Cantor Fitzgerald Europe | +44 (0) 20 7894 7000 |
| David Porter Sarah Wharry |
Appendix A
Management reserves and prospective resources estimates, 22 December 2015
| Reserves & Resources (MMboe) [(net to Cadogan)] | ||||||||
| Licence | Type | Working interest | Area (km2) | Current net production (boepd) | 3P reserves | 2C contingent resources | Best estimate prospective resources | |
| Eastern Ukraine | Pokrovska | Conventional gas | 70.0 | 50 | - | 2.6 | - | 73.6 |
| Pirkovska | Conventional gas | 100.0 | 72 | - | 11.3 | 6.6 | 67.9 | |
| Zagoryanska | Conventional gas | 100.0 | 50 | - | 1.6 | 2.2 | - | |
| Western Ukraine | Monastyretska | Conventional oil | 99.2 | 26 | 48 | 2.7 | - | 3.0 |
| Debeslavetska (prod.) | Conventional gas | 99.2 | 27 | 66 | 0.8 | - | - | |
| Debeslavetska (exp.) | Conventional gas | 99.2 | 218 | - | - | - | 1.0 | |
| Cheremkhivska | Conventional gas | 53.4 | 119 | 8 | 0.2 | - | ||
| Bitlyanska | Conventional oil | 99.8 | 390 | - | - | 1.2 | 66.6 | |
| Slobodo Rungurska | Conventional oil | 100.0 | 101 | - | - | - | 8.0 | |
| Total | 1,052 | 122 | 19.2 | 10.1 | 220.0 | |||