Declining production and growing losses have seen Ukraine-focused oil and gas company Cadogan Petroleum fall sharply in Friday morning trading.
The group has announced losses for the six months to the end of June of $7.1m, worse than the $5.8m seen in the same period of the previous year.
Resource stocks often lose money as companies invest to increase production, but unfortunately for Cadogan, production growth hasn't materialised. Average production has fallen from 424 barrels of oil equivalent per day last June to a mere 210 boepd this year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cadogan is also involved in a lengthy legal battle with a firm called Global Process Systems dating back to 2009 under which it is owed $37.5m. So far it has only received $7.5m so has now had to take further action to recover the outstanding amount.
Cadogan Petroleum shares were down 7.4% at 9:29 and have fallen 58% in the last 12 months.
BS
-
Saba Capital and Boaz Weinstein respond to investment trustsAs investment trust managers and industry experts accuse Saba of self-motivated opportunism, the hedge fund responds to specific "misleading claims" and sets out its stall
-
How to find top-quality companies with growing dividendsIan Mortimer, portfolio manager of Guinness Global Equity Income Fund, shares where he would put his money for sustainable and growing dividends
