Cadogan Petroleum, the London Stock Exchange listed independent oil and gas company with exploration and production licenses in Western Ukraine, announces the resumption of its production activities. All of their employees are safe. The Company is monitoring the situation daily and taking appropriate action to ensure the safety and essential needs of its employees. The assets and the operations are secured. 

Ukraine operations

Cadogan holds working interests in two conventional gas-condensate and oil licenses located in Western Ukraine.

The Group’s assets are located in the prolific Carpathian basin in close proximity to gas distribution infrastructure and far from the zone of military confrontation with Russia. The two licenses (Monastyretska and Bitlyanska) are operated by the Group. The Monastyretska license produces oil; its oil production has been increased by five folds over the last couple of years and the license still holds upside potential.

Monastyretska License area
The core Monastyretska License combines existing oil production with significant upside potential. It is located in the Lviv region in West Ukraine.

The 25.9 Km² exploration license is part of the Carpathian fold belt (Skuba unit). It is surrounded by long standing oil producing fields, including Starosambirske, one of the largest oil fields in the region with cumulative production exceeding 22 million barrels.

The Monastyreskaya license has tested and produced oil from several wells in the Paleocene Jamna Formation. Today the license is being produced by three wells which are all equipped with sucker rod pumps and produce an aggregate of 225 bpd. All three wells are old wells which Cadogan re-entered and on which successfully performed production optimization operations.

The produced oil has a negligible gas and water content and so is treated locally and trucked by the buyer to the final destination.

The Group holds a 99.2 per cent working interest in the license, with the State company NAK Nadra holding a 0.17% beneficial interest and the right to receive dividends. The license validity was recently extended to November 2019, after which an application for a 20 years’ production license will be filed.

Bitlyanska Licence area
Located in West Ukraine, Bitlyanska is an exploration licence in a proven and mature hydrocarbon system (outcrop and wells) within the Carpathian Krosno tectonic fold. It is surrounded by oil and gas producing fields (see figure). and close to existing infrastructure.

The license, which covers an area of 390Km², contains the Bitlya, Borynya and Vovchenska hydrocarbon discoveries. During testing, hydrocarbons were found in low permeability / high pressure formations. The Borenya 3 well, which was re-entered in 2013, tested a significant influx of gas, oil and condensate but was not stable enough for production. The well is suspended pending fracturing and possible re-entry to the deeper layers.

The licence has been attributed 2P and 3 P reserves of 0.8 Mboe and 3.2 Mboe respectively, with significant upside 2C potential of 14.8 Mboe. The Borynya licence is estimated to hold 4.5 Mboe P50 prospective resources.

KeyFacts Energy: Cadogan Petroleum Ukraine country profile