Cadogan suspends workover at 1 of 4 wells

Cadogan Petroleum (CAD LN), and independent oil & gas producer, suspended workover of its Pokrovskoe 2a well after having drilled it more than 4.7 km, the company reported yesterday. Management said it has not been able to recover a running string that became stuck in the hole during an attempt to lift it out. Management is evaluating options to re-enter the well, but has decided to move the drilling rig to another prospective well. The company said drilling at its three other wells is in progress. We estimate the company spent more than USD 20 mln to drill Pokrovskoe 2a, roughly 1/4 of its cash balance as of the last reporting date (mid-November 2011).