Ukraine-focused Cadogan Petroleum reported Friday a fall in production and increased losses for the six months to June 30.
Average production for the first half of 2012 more than halved to 210,000 barrels of oil equivalent per day (boepd) from 424,000 boepd in 1H 2011. The firm's loss for the period increased to $7.1 million (1H 2011: $5.8 million).
Cadogan said that results from the workovers of the Zagoryanska wells it acquired in 2010 have, so far, not been in accordance with expectations. Since the end of the first half the firm has finished drilling on its Zagoryanska 11 well and the data acquisition program for this is underway.
Meanwhile, operations at its Pokrovskoe project remain temporarily suspended due to a running string becoming stuck at its Pokrovskoe 2a well.
On the positive side, Cadogan CEO Bertrand des Pallieres commented in a statement that the firm is continuing to make significant progress in strategic alliances with both state companies and major oil companies.
The firm has also established a joint venture that holds subsoil rights to nine shale gas license areas in the Lviv Basin, and des Pallieres added that although the firm's shale gas initiative will take some time to be realized it is "able to participate in this type of venture without the usual levels of capital".
In a brief research note titled 'Time to Stop Talking and Start Delivering' oil sector analysts at London-based FoxDavies commented that "the company needs to step up exploration and development activities".