Cadogan Petroleum production falls

31st Aug 2012 08:58

Declining production and growing losses have seen Ukraine-focused oil and gas company Cadogan Petroleum fall sharply in Friday morning trading.The group has announced losses for the six months to the end of June of $7.1m, worse than the $5.8m seen in the same period of the previous year.Resource stocks often lose money as companies invest to increase production, but unfortunately for Cadogan, production growth hasn't materialised. Average production has fallen from 424 barrels of oil equivalent per day last June to a mere 210 boepd this year.Cadogan is also involved in a lengthy legal battle with a firm called Global Process Systems dating back to 2009 under which it is owed $37.5m. So far it has only received $7.5m so has now had to take further action to recover the outstanding amount.Cadogan Petroleum shares were down 7.4% at 9:29 and have fallen 58% in the last 12 months.BS