Cadogan Petroleum reduced production by 23% in the H1 of 2020
Cadogan Petroleum in the first half of 2020 reduced average daily production by 23%, to 230 boe compared, to 297 boe in the first half of 2019. This is stated in the report for the corresponding period at the London Stock Exchange.
According to the report, the company’s revenue from production decreased by 46% compared to the same period in 2019 due to a 33% decrease in the average oil sales price and, as noted, a 23% decrease in production volumes. In particular, total revenue decreased by 62% compared to the same period in 2019 due to the lack of gas sales. Cost-cutting initiatives have been implemented to mitigate the negative impact of the COVID-19 pandemic. Namely, gas, purchased in 2019, was not sold from storage facilities in anticipation of the corresponding market prices.
Derzhheonadra in May 2020 rejected the HC exploration and production license for Bitlyanska area, despite the timely submission of the documents package with all the necessary interim approvals, and the absence of comments from the Geocontrol during the audit. As a result, Cadogan filed a claim to appeal this decision to the Kyiv District Administrative Court.
A message to shareholders at the London stock exchange, also noted that the company’s cash balance at the end of the reporting period is $11.6 million compared to $13.7 million in 2019. It assures that this level is sufficient to maintain the company’s current operations.