CADOGAN The Multibagger play!

The St. Michael's Golden-Domed Cathedral as se...

Gold top investments!

Cadogan Petroleum are the second investment in my 100k to £1 million challenge.

I declare a 70,000 share interest 20,000 bought 28/01/2011 @23.25p with a further 50,000 purchased today @24p.

I have been following Cadogan on and off now for some two years. The company have been plagued with internal and external frivolous legal claims and counter claims. They operate in the Ukraine and have interests in 8 licences/ fields. Now it’s more of a recovery play here. The share-price had an Ipo of 230p but since the day they floated there’s been nothing but problems ranging from Licence disputes to internal board warfare.

Happily for Cadogan the company have been COMPLETELY and ruthlessly turned around by the new board. The licence dispute has been settled. The Cadogan Board basically employed some heavy fire-power from within one of the Ukrainian government departments. The new Board are beginning to bring confidence  back as evidenced by the current rising share-price which has been slowly trending up for the last 3 months or so.There’s rumoured to be several re-ratings about to be aired as Cadogan’s old CPR looks set to be greatly improved upon with a new CPR. The company’s’ production base is set to at least treble with a distinct possibility of a five-fold increase in 2011. They are now debt-free and fully funded with approximately $40 million in the bank and due a further $30 million dollar payment in 2011 from Global process Systems which will add significantly to their war-chest.

They have a New strategic shareholder – SAE Capital –  who have 29% of the company. They operate in the Ukraine and have the backing of the Ukrainian government who are desperate to wean their economy away from dependence on Russian gas sales. Current assets and activities are listed below:

Production activities

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  1. Perana says:

    Nice one Dan, I have been tipping this one for the last couple of weeks, took my final stake this morning. Has to be the most undervalued share left on AIM. Looking for £1.00 by year end.

    • Brokerman says:

      You’ll get the 100p.
      Just hold and wait.


      • Mark says:

        I like your idea of £100k to £1Million. However I suspect that the majority of PI’s will be investing less than this (like me). I was wondering if the deals would work scaled down i.e. could you turn a £10k Investment ISA deposit into £100k (Tax Free) in a year following the same trades? (As per yojimbo’s note about this stock being ISA’able)

  2. yojimbo says:

    I have sitting in this one for a couple of months for pretty similar reasons. It is very undervalued because of previous management/licence issues which now appear to be resolved. Breakout above 24p now looks like it could be near.

    Also worth noting it is ISA-ble.

  3. kennyb says:

    Daniel,i read alot of discontent around the various bb’s about investing in Russia and numerous bad posts (e.g company UEN) where investors feel they have been mugged…
    Do you not have any concerns about investing there?

    • Brokerman says:

      I don’t have any concerns in the least. If Russian oil is good enough for BP then it should be seen as a fair pointer. BP have agreements with TNK and now with Rosneft.


  4. bobbyshafto says:

    this is a fully listed share not AIM kennyb.
    It’s all but a Ukraine oil co with 97% Ukraine staff pretty much like JKX and FXPO which have both been incredible investments for many.
    People look at RPT who run into problems but they were to Western based and didn’t understand about doing business in a foreign country.
    A stock overhang has pegged CAD this last few months, QVT have been selling out after CAD reported them to the takeover panel when they tried to takeover the compnay in collusion with Weiss. Longterm this should go well over 100p. Big company with huge gas/oil reserves when you start digging is this. Interesting Ian Baron now in charge who was involved in Dragon oil when it was a few pence (now nearly 600p) enough said.

  5. Devil says:

    Hi Dan

    Which stock was the first investment?

  6. 10Bagger says:

    Brokerman (or is it Martin?),
    Looking forward to following your tips closely.
    As is the FSA.
    Ten Bagger

    • James says:

      The FSA? What should we take that to mean – that you’ve reported Dan?
      My understanding was that regulatory resources – at every level including comp authorities – were being shifted onto ‘big players’. Does Dan now sit alongside the titans of finance?

  7. Paragon says:

    Hi Dan,
    Interesting info on Cadogan, I’ll check them out. Wondering what your take is following MXP’s flow test today? Still bullish?

  8. Chicagoguy says:

    Hey Brokerman thanks for the Cad opinion.
    I’ve been looking at them for a while mysel,f bought in at 20p.
    Hey Bro I see the loonys are out must be a full moon.
    10 Bagger what is your problemo? Jealousy reigns supreme.
    You pussy. Go and play on the freeway.
    Keep up the great work Dan. And long live freedom of expression thats why we have it enshrined in our constitution.

  9. Spidymonkey says:

    Hi Dan,

    This really is quite a coincidence I bought into CAD on the 28th as well! lol

    When I seen the SP & volume spike up I was delighted but didn’t realise you had posted about Cadogan and in fact thought it was a fairly under the radar stock. Great to see that you have picked it for your millionaire challenge as it reinforces my belief in CAD.

    Look forward to seeing your other picks also.


    PS. Thinking of doing an online NAV for them! What do you think?

    • Brokerman says:

      Calculate two one with the Global payment and one without.


      • Spidymonkey says:

        Not sure I follow? Do you mean the donate button? I use all donations towards building and hosting the new nav calc site. Those who donated were kind enough to support my efforts and also many were a part of the process in making it what it is as they made suggestions which in turn helped me build the site.

        Anyway CAD looks good none the less and the donate button has been removed from the site..

        • Spidymonkey says:

          Ok maybe I misread that on second thoughts. By global payment you meant, CAD’s global payment right lol

          Knew those pints after work were a bad idea!


        • Sambo. says:

          Spidy you definitely are not following,

          Dan is referring to the article:

          “They are now debt-free and fully funded with approximately $40 million in the bank and due a further $30 million dollar payment in 2011 from Global process Systems ”

          Pretty sure he doesn’t care about your donate button champ.


      • Spidymonkey says:

        Ah the global payment I see where your coming from can add it into the cash section so it can be easily removed/changed.

  10. bobbyshafto says:

    two very important holding RNS’ after the bell tonight, this may well be ‘sprightly’ to say the least tomorrow morning. That 100p price target may not take until the end of the year now. Do an online NAV for CAD whoever was talking about it please.

  11. Oil Stock Lover says:

    Hey Dan,
    I wouldn’t normally want to detract from your post, but could you please take a look into why XEL keep extending the Letter of Intent on the new rig they were going to buy. It seems to be going on forever, and seems a little surprising to me as the oil is there, as is the finances from what I can gather, so why not buy the thing? Is it waiting for reserves to be confirmed, or additional data on expected flow, or something else entirely? Personally don’t think it’s the takeover some are spouting on the boards, otherwise the price would be up much more.

  12. Danny says:

    Hi Dan

    Sorry to bring up another company in a discussion but have you looked into STEL? Diamond company in West Africa. What are your thoughts on today’s RNS?


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