Ukraine unrest no cause of disruption, says Cadogan Petroleum

21st Nov 2014 13:44

Ukraine-focus explorer and producer Cadogan Petroleum said that 2014 has so far been "broadly positive", as the company has cut its costs base and lowered the risk of new prospects in its license areas.The oil producer said it had been monitoring the political situation in Ukraine since July but reported the conflict in the eastern part of the countries had not caused disruptions to its operations, nor had it affected the firm's ability to operate effectively.The carrying value of the group's assets was affected by the weakening of the Ukrainian hryvnia against the US dollar, though its local currency running costs had benefited from the devaluation of the Ukrainian currency.Gas trading in Ukraine has enjoyed a steady progress starting to provide "meaningful, additional revenues", Cadogan said, adding it was expecting further growth in volumes and range of products in the short to medium term."Overall, the company remains in a strong financial position, with no debt, new revenue streams and substantial cash resources," Cadogan said in a statement.The group added its Monastyretska site is maintaining its production performance at consistent levels, highlighting the firm's projects in the east and west of Ukraine had continued to operate as normal and the group was considering other suitable opportunities in the country and elsewhere.Cadogan Petroleum shares were 2.12% up to 10.85p at 13:48 on Friday.