Cadogan releases trading statement after close

17th May 2010 17:42

Oil and gas explorer Cadogan Petroleum released its interim management statement after the market closed. Cadogan says that it has cut its average monthly cash outflow to £450,000. There was £29.5m ($42.7m) in the bank on 17 May.An independent reserves evaluation has reclassified a large proportion of reserves to the resource category. Management admits that it is uncertain whether the reserves and resources can be developed.Cadogan has been told that it has a strong case for its litigation against its former chief executive and chief operating officer. Cadogan has settled related litigation with Smith Eurasia over payments it made to former executives of Cadogan. Smith Eurasia has paid $4.5m but does not accept liability.