Interim Management Statement

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

Interim Management Statement for the period from 1 January 2014 to 19 May 2014


Introduction

Cadogan published its Annual Financial Report for the year ended 31 December
2013 on 28 April 2014.

Political situation

We continue to monitor the current political situation in Ukraine carefully but
there have been no disruptions to the Company's operations, or ability to
operate effectively, in any of our operating locations. As a result of the
recent political and economic turmoil in Ukraine, there has been a significant
devaluation of the Ukrainian Hryvnia against the US Dollar (approximately 40%
since 1 January 2014) which, while affecting the carrying value of the Group's
assets, has a correspondingly positive impact on the Group's local currency
running costs.

Financial position

As at 19 May 2014, the Group had current cash and cash equivalents of
approximately $47.8 million (excluding $1.3 million of the Group's share of
cash and cash equivalent in joint ventures and excluding $5.1 million of
yield-generating fixed income investments).

Executive Summary

The beginning of 2014 has been broadly positive for the Group, with several new
prospects having been identified in our license areas following further seismic
acquisition and reinterpretation during the course of 2013 and early 2014 and
further significant reductions to the Company's cost base in line with
management's plan. Monastyretska has now returned to and even surpassed
previous production levels. Overall the Company remains in a strong financial
position, with no debt and substantial cash resources.

2014 has seen the continuation of operations as planned on the Company's assets
in the East and the West of the Country. Revenue, largely reflecting production
from the Group's Cheremkhivska, Debeslavetska and Monastyretska fields and
services provided to third parties, was stable.

Operations

The Group continued to operate safely and efficiently throughout the period. As
anticipated, the principal focus for early 2014 was to continue reducing the
risk of present and anticipated operations while maximising existing production
potential. With new prospects having been identified in Pokrovskoe and
Pirkovskoe following 3D seismic interpretation and continuing workover activity
on Pirk 1 since October 2013, with so far promising indications, the de-risking
and efficiency targets set for our technical operations and sub-surface
explorations teams have largely been met.

Borynya 3 has thus far proved disappointing, with lack of data from previous
drilling activities having hampered our current efforts. However, we remain
confident in its potential value and our assessment work continues. Production
has increased moderately in Debeslavetska while potential gas production from
Cheremkhivska appears promising at this stage. In Monastyretska production has
reached 30 bopd and is expected to rise further. The re-evaluation of the
Groups' assets continues and we remain positive in our outlook.

Pokrovskoe field

On 6 July 2011 Eni S.p.A ("Eni"), the major Italian integrated energy company,
acquired a 30% interest in this licence and the associated work obligations
have now been fulfilled. Following the 3D seismic interpretation, new prospects
have been identified in the shallower formations.

Zagoryanska field

Five wells were drilled in the field and gas encountered in the Upper and Lower
Visean and Tournaisian reservoirs, and in one well hydrocarbons have been
encountered in the Devonian reservoir without achieving commercial production.

As at 31 December 2013, the Group assessed the recoverability of the carrying
value of the development and production assets related to the Zagoryanska
licence, resulting in the impairment of the mentioned assets to nil.

Pirkovskoe field

Recent analysis shows great promise in the upper intervals. Following a
thorough study of Direct Hydrocarbon Indicators (DHI) and 3D Amplitude Versus
Offset (AVO) reconnaissance, a drillable prospect has been identified and its
characterization is currently underway, showing good prospectivity and
significant potential size.

A work-over activity on Pirk 1 well started in October 2013 and is still
continuing while 3D seismic reinterpretation is ongoing.

Borynya and Bitlya fields

Borynya 3 well was re-entered and tested in the Krasno 1 interval with
promising results. The decision was made to put the fracturing job on hold due
to lack of sufficient data from previous drilling activity.

Minor fields

Cadogan owns exploration, development and production licences either directly
or through subsidiaries or joint ventures in several minor fields, of which two
are currently in commercial production (Debeslavetska and Cheremkhivska) and
one (Monastyretska) is in pilot commercial development.

In Debeslavetska, all the updated DHI reconnaissance technologies have been
applied with so far interesting results and 2D seismic acquisition was
completed at the end of March. Three new, drillable prospects have now been
identified with the best of them currently undergoing further scrutiny.

In addition some relatively deeper (circa. 600m) potential horizons now appear
likely and if our analysis proves correct, will significantly improve potential
resources in the area.

The first well in Debeslavetska will be drilled in late September of this year
and the eventual tie-in to the existing production facilities will take
approximately 4 weeks.

In Monastyretska the planned formation light stimulation was successfully
completed in mid-March, immediately increasing production from 20 to 30 bopd.
On 13 May 2014 a sucker rod pump was installed and performance tests are
currently ongoing. First results are expected imminently.

Negotiations with local operators for the acquisition of two further, existing
wells, with the aim to bring them back to production, are currently underway.
Performance monitoring of these three wells will give the Company a better
understanding of the reservoir characteristics and behaviour, allowing us to
formulate future plans to increase production further.

Enquiries to:

Cadogan Petroleum Plc [phone]

Bertrand des Pallieres, Chief Executive Officer

Cantor Fitzgerald Europe [phone]

David Porter
Richard Redmayne