Cadogan makes $153.1 mln in 2011 net profits
KYIV. May 3 (Interfax) - Cadogan Petroleum, a British oil and gas company with onshore gas, condensate and oil assets in Ukraine, made net profits of $153.08 million last year versus $1.318 million the year before, thanks to "the completion of a major transaction with Eni S.p.A ("Eni") resulting in Eni owning 60% of the group's interest in the Zagoryanska license and 30% of the Group's interest in the Pokrovskoye
license," the company reported.
The company's annual report says sales revenues last year increased 38.9% to $6.98 million due to higher prices for natural gas in Ukraine.
"A substantial increase in the gas price in Ukraine has enabled revenue to increase from $5.0 million in 2010 to $7.0 million in 2011. A gain on [the] disposal of two subsidiaries in 2011 of $164.9 million, including [the] revaluation of the remaining jointly controlled interest of $91.1 million, in the above mentioned subsidiaries that the group has lost control in, contributed to the profit for the year of $153.1 million (2010: $1.3 million). This profit was reflected by a corresponding increase in the net asset position as [of] December 31, 2011 to $283.0 million from $131.2 million as at 31 December 2010. The cash position of $65.0 million as [of] December 31, 2011 has increased from $36.4 million at 31 December 2010 mainly as the result of the cash consideration received from the disposal of interest in two subsidiaries to Eni," the company reported.
Eni acquired from Cadogan 30% of Pokroskvoye Petroleum BV and 60% of Zagoryanska Petroleum BV in July of last year. These Dutch companies are licensed to develop the same-named oil and gas deposits in Ukraine. However, Eni announced this March that it was declining to exercise its option to acquire another 30% in Pokroskvoye BV after analyzing the outcome of the wells Pokrovskaya-1 and Pokrovskaya-2.
This preceded a Cadogan announcement that it was temporarily halting operations at the Pokrovskaya-2 well because of the casing string getting jammed during attempts to lift it. The equipment available in Ukraine does not make it possible to resume work at the well.
