OREANDA-NEWS. August 4, 2010. Cadogan Petroleum, a troubled onshore explorer for oil and natural gas in Ukraine, has commenced commercial production of natural gas from its Zahorianske-3 well, the company representative announced Aug 3. Production commenced on Aug 1, 2010 as planned, on budget and on schedule. The flow rate is expected to average 35 mcm/day of natural gas and 15 t/day of gas condensate. After a period of stable production, further tests will determine whether higher flow rates of up to 50 mcm/day could be sustained.

Millennium Capital considers the news as positive for CAD LN, since the company seems to be able to make at least some sales to keep afloat until the normal operations commence. Ultimately, Millennium Capital estimates the sales of natural gas from the well to potentially bring USD 4.7-USD 6.7 mn p.a in revenues for the company.