Interim Management Statement

17 May 2013

               Cadogan Petroleum plc ("Cadogan" or "the Group")                

   Interim Management Statement for the period from 1 January to 17 May 2013   



Introduction

Cadogan published its Annual Financial Report for 2012 on 25 April 2013.


Financial position

At 17 May 2013 the Group had current cash and cash equivalents of approximately
$66.8 million.


Operations

The Group continued to operate safely and efficiently throughout the period.

As outlined in the Annual Report in the Chairman's Statement and Chief
Executive's Review (and as notified on 25 April 2013), in 2012 the Company
overhauled its technical operations and sub surface exploration teams in light
of disappointing results on its Pokrovskoe and Zagoryanska licences. Following
completion of that process we continue to re-focus our operations on those
licences where management believes that new and potentially economically viable
prospects exist.

Rig site preparation to re-enter the Borynya 3 well is almost complete and the
Group's Astro Service rig is expected to be ready on location at the beginning
of June. The gas shows, evident from previous logging and drilling data, are
encouraging albeit further work will be needed to ascertain the commercial
viability of the prospect. On the Monastyretska licence in Western Ukraine,
operations at the Blazhiv 1 well continue to demonstrate positive results.
After an initial period of production at 5 cubic metres per day, the well is
now stabilised at 3.5 cubic metres per day and an evaluation for further
improvement, as well as the re-entry of a further two wells, is ongoing. In Zag
3 an intervention to open the V19 level to production was completed but testing
did not produce gas at a commercial rate. V18 produced gas at a low rate and we
are in the process of evaluating a rig-less chemical wash intervention to
enhance production. Work with our joint venture partner Eni on assessing the
Zagoryanska and Pokrovskoe licences continues. In general our Ukrainian
operations in 2013 are expected to focus on shallow prospects in our western
assets that require less capital intensity than our eastern, deep prospects.


Shale Gas

Studies are ongoing on our 3,800 acre position in the Lviv Basin, with the aim
of defining the best area to start the operations for the first exploration
well.


Litigation

As previously announced, Cadogan has reached a settlement with Global Process
Systems LLC ("GPS") by way of an Agreement with GPS for the purchase of two gas
processing plants for the sum of $29.5 million. The completed sale represents a
full and final settlement of all claims and liabilities between the two
parties.


Service Business

Partly in order to remedy what we perceive as a shortage of adequate investment
in technical services in the Ukrainian oil and gas sector, Cadogan has invested
limited resources in oilfield services in Ukraine. This initiative has
generated over US$500,000 gross revenues for the Group in the past 6 months and
we expect this trend to continue and even increase over time. We are currently
assessing a number of alternatives to facilitate accelerated growth in this
developing business area.



Enquiries to:

Cadogan Petroleum Plc [phone]

Bertrand des Pallieres

Chief Executive Officer

Cantor Fitzgerald Europe [phone]

David Porter

Richard Redmayne

Bankside Consultants [phone]

Simon Rothschild