Operations Update

23 September 2013

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

                           Cadogan Operations Update                           

Following the Company's announcement on 16 July 2013 regarding operations at
Borynya 3, the new logs run in the upper part of the well-site have confirmed
the presence of gas and condensates and porosity in the range of 10% to 15%.
Some difficulties and delays were caused by unexpected bottom hole assembly
failure causing brine bleeding which inhibited the use of pressure measurement
for more accurate test interpretation.

Two intervals have been tested so far, 2745-2685m and 2935-2890m. In each case
testing resulted in a flow of gas and condensate that was consistent but
non-sustainable; as condensate increased, the gas decreased and after
approximately 48 hours, all gas and condensate flow ceased.

Gas was flared and liquid hydrocarbons were collected for analysis.
Hydrocarbons were confirmed as oil (30 API) and condensate (48 API). Pressure
build-up and reservoir characterization were however hampered by the leakage of
brine in each interval tested.

Further testing in the upper interval has begun, utilising a simpler string to
re-shoot those layers with best porosity as identified by logs. This process
will include an acid wash to improve flow and reduce formation surface damage.
The Company expects to be able to announce the results from this further
testing within a few weeks.

Due to the clear presence of hydrocarbons, planned operations for information
gathering on the production potential and assessment of future operations will
continue. Due to the presence and nature of fluids and the petro-physical
characteristics of the formation itself, the Company anticipates the need for a
future acid-frac in order to obtain and support sustainable and commercial
production at Borynya 3.

Entry of the deeper intervals, down to circa 4,300m, is planned for 2014 with a
suitable rig for such a heavy work-over. An anticipated acid-frac will also be
planned during those operations.

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