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: