Cadogan Petroleum (CAD.LN), an independent oil and gas company with assets in Ukraine, expects to start commercial production of natural gas by the end of 2008, and to move to "substantial production" by mid-2009, Chief Executive Mark Tolley told Dow Jones Newswires Thursday.
Cadogan is focused on completing its three gas refineries in Ukraine with a total capacity of 4.5 million cubic meters of gas per day. Tolley said they are expected to be finished in mid-2009.
Cadogan is planning to invest $498 million in the development of its assets by the end of 2010. The company, which is debt-free, is able to finance the investment from its own cash and future revenue, the CEO said.
He added that Cadogan, which raised $270 million from an initial public offering in London earlier this year, is "not at all focused on (mergers and acquisitions) and has a long-term view to develop" its Ukrainian assets. "We are not here for a quick-in, quick-out," he said.
Cadogan recently won an appeal against local company Poltavanaftogazgeology, which was trying to annul two of Cadogan's 11 licenses. Poltavanaftogazgeology has a month to file its own appeal.