Cadogan Petroleum, an independent, diversified oil & gas company listed on the main market of the London Stock Exchange, today announced its unaudited results for the six months ended 30 June 2022.

H1 2022 witnessed severe challenges due to the invasion of Ukraine by Russia on 24 February 2022. Cadogan stopped its production activities for 3 weeks, at the beginning of March 2022, and was able to resume them after having secured the safety of its employees, its assets, the transactions with its customers and the deliveries.

In H1 2022, the average production was 336 bpd in (331 bpd in H1 2021), a 1.5% increase versus H1 2021. This result was achieved notwithstanding the war in the country and the shutdown of all Blazhiv wells for 3 weeks. The production revenues increased by 40% versus the same period in 2021, due to a 38.5% increase in the average realised oil price and a 1.5% increase of the production volumes. Overall revenues increased by 2.6% versus the same period in 2021 due to the absence of sales of gas for the first half 2022.

The Company continued defending its position for the Bitlyanska licence award at the Court of Appeal. In August 2022, the Court of Appeal denied the satisfaction of its claims. The Company considers that this decision is based on incorrect application of law and has filed an appeal to the Supreme Court.

In the context of the prevailing situation in Ukraine, the services segment was dedicated totally to supporting the Group’s production activities. Starting from 2022, production entities activities and service entity activities will be presented solely as Exploration and Production segment result.

Operations Review

E&P activity remained focused on maintaining and securing its activities for the new term and safely and efficiently producing from the existing wells within the Blazhiv oil field. During H1 2022, the average gross production rated at 336 bpd, which is 1.5% higher than in H1 2021 (331 bpd), notwithstanding the 3 weeks stoppage of all Blazhiv wells in March due to the war events in the country. For the purpose of geological construction precision of Blazhiv oil field and Monastyretska fold and also identification of new perspective structures within the licence area boundary, in Q4 2021, Cadogan launched analyses for data reprocessing and reinterpretation of old 2D seismic data. In H1 2022 the Company received required data for field skeleton structural and tectonic modeling.

Regarding the Bitlyanska 20-year exploration and development licence, Usenco Nadra filed an appeal against the decision of the Kyiv Administrative Court. In August 2022, the Court of Appeal rejected the Company's claim. Usenco Nadra considers that this decision is based on incorrect application of law and will file an appeal to the Supreme Court.

In Italy, in February 2022, the Plan for the Sustainable Energy Transition of Suitable Areas (“PITESAI”) was approved by the Ministry for Environmental Transition. It delivers a new framework for the possible resumption of exploration and production activities on land and at sea. Exploenergy is analysing the impact of this new regulation framework on its activities and monitoring the possible future applications for the approval of new licences.

KeyFacts Energy: Cadogan Petroleum Ukraine country profile