Cadogan losses widen

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Anthea Pitt

 28 April 2010 07:55 GMT

UK-based Cadogan Petroleum posted a wider full-year loss as its Ukrainian assets were impaired by £63.5 million ($97.4 million), but said it had sufficient capital to continue as a going concern.

For the year ended 31 December 2009, the Ukraine-focused company incurred a total impairment of £87.3 million, Reuters reported.

Cadogan said a strategic review of its assets had revealed that the drilling equipment used in Ukraine were inadequate and hindered proper evaluation and development of its assets.

The company posted a pretax loss of £107.2 million, compared with £24.4 million in the year-ago period.

Revenue climbed 28% to £2.3 million, helped by sale of gas and oil from the producing wells in two of its fields.

Year-end net cash and cash equivalents stood at £30.5…

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