Cadogan losses widen

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 million, down from £72 million pounds last year.

In June, Cadogan had said it started litigation in the High Court in London against its former chief executive and chief operating officer after an internal probe into potential accounting irregularities.

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