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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
