British Cadogan Petroleum sells Ukrainian subsidiary for $2.8 million

The British oil and gas company with assets in Ukraine, Cadogan Petroleum, has agreed with Ukrinvest Group (Kншv) to sell its subsidiary Production Company Gazvydobuvannya (Poltava).  It is reported by Energoreforma.  

Cadogan Petroleum is engaged in the development of the Debeslavets and Monastyretsky fields.

Recently, the British company has been actively trying to sell its two subsidiaries, one of which is Gazvydobuvannya, which is located in eastern Ukraine and does not have licenses for the development of hydrocarbon fields.

PC Gazvydobuvannya LLC was established in 2001; it has been a member of Cadogan Petroleum Plc since 2006.

“The sale of Gazvydobuvannia LLC is part of Cadogan’s plan to create the basis for growth in Ukraine through the wise use of its funds and monetization of assets.  The first step towards the growth of our production was the re-commissioning of old wells, which requires minimal use of capital.  The second step was success at the Blazh-10 well, the continuation of work on which will continue to be financed to a large extent through the sale of Gazvydobuvannya”, Cadogan CEO Guido Michelotti was quoted in a statement.

The net profit of Cadogan Petroleum in 2018 amounted to $1.2, while in 2017 the company had a net loss of $1.6.  The average daily hydrocarbon production last year increased by 61% to 250 barrels of oil equivalent.

Cadogan Petroleum PLC is a UK-based oil and gas company in Ukraine.  It owns 8 licenses.  The main production of this exploration and production company is focused on the deposits of the Dnipro-Donets Basin in the east of the country.  In addition to these sites, the company also operates in the west of Ukraine – in the Carpathians.  The company's shares are listed on the London Stock Exchange.

Tags: gas, Naftogaz, contracts, oil, hydrocarbon production, tariffs, legislation, energy market

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