Business
Trading Statement and Drillin
Trading Statement and Drillin.
About this update from Cadogan Energy Solutions Plc
[{"type":"text","content":"\n RNS Number : 5907X Cadogan Petroleum PLC 08 December 2010 \n \n\nCadogan Petroleum plc (\"Cadogan\" or the \"Company\")\n8 December 2010\nTrading Statement and Drilling Update\nOperations\nThe Group continues to operate safely and efficiently and the HSE statistics continue to record no recent Lost Time Incidents. \nDrilling at the Pokrovskoe 1 well continues as planned towards a structural closure in the Lower Visean V26 horizon, identified on 3D seismic. In the event that the well is a successful discovery, the Company expects to enter the testing phase early in 2011. Current drilling depth is 5,400 metres and the proposed target depth is around 5,800 metres.\nDrilling and testing on the three development well programme on the Debeslavetska field is continuing and the results will be announced in the new year. There are no further updates to give on any of the Company's other fields or wells since the publication of the Interim Management Statement on 19 November 2010.\nBusiness Plan and Work Programme for 2011\nThe Board of Cadogan has approved a 2011 work programme aimed at increasing production from the Company's existing assets three-fold, by the end of the 2011 financial year, from the current level of approximately 450 barrels of oil equivalent per day (\"BOEPD\"). The approved budgeted capital expenditure for this programme is $9.6 million (£6.1 million) for 2011.\nThe Board has also considered a contingent budget for 2011 of up to a further $21.7 million (£13.8 million), the spending of which will be dependent on the success of current drilling activity and the projects included in the approved budget. The objective of implementing this latter work programme is a five-fold increase in production, by the end of the 2011 financial year, from existing levels.\nSuccess of the approved and contingent work programmes is also expected to enable transfer of resources to reserves, resulting in an anticipated doubling in the 3P reserve base from the current level of 7.7 million barrels of oil equivalent by the end of the financial year 2011.\nIn addition to the targeted increase in production and reserves, as a result of this work the Company will:\n· improve its sub-surface understanding of its existing licences to permit future operations to be developed through a programme of seismi...