GPS Litigation Update

CADOGAN PETROLEUM PLC                             

                          Agreement reached with GPS                           

Further to the announcement of 16 April, Cadogan Petroleum Plc is pleased to
confirm completion of the sale of the gas plants referred to therein, following
receipt in full of the agreed consideration of $29.5 million. In accordance
with the terms of the settlement documentation, the parties are now taking
appropriate steps to dismiss the legal proceedings commenced in England against
GPS and all other claims and liabilities have been released.

Cadogan Petroleum Plc [phone]

Bertrand des Pallieres

Chief Executive Officer

Cantor Fitzgerald Europe [phone]

David Porter

Richard Redmayne

Bankside Consultants [phone]

Simon Rothschild