Cadogen eyes sea change in prospects

25th Aug 2011 08:28

Ukraine-focused oil and gas firm Cadogan Petroleum fell into the red in the first half of the year but hailed a 'transformation' in the company's prospects.In the six months to the end of June 2011 Cadogan posted a loss before tax of £3.8 million, compared with a £0.4m profit the year before.But it said a deal completed in July with Italy's Eni S.p.a. would help mitigate risks to the group's investments in its major assets.Under that agreement, Eni acquired major stakes in two of Cadogan's operations in eastern Ukraine.Chief executive, Bertrand des Pallieres, said completion of the Eni deal would enable the group to implement a viable development and growth strategy."Drilling operations using western style equipment are underway and results are expected shortly," he said. "This, along with increased financial resources, will allow the group to take advantage of other significant opportunities in Ukraine."