Operations Update

CADOGAN PETROLEUM PLC                             

                           Cadogan Operations Update                           

The Company has noted that the Ukrainian Government last week passed emergency
budget legislation increasing production taxes for the oil and gas industry for
the period 1 August 2014 to 31 December 2014. Tax on gas production from
horizons shallower than 5,000m increases to 55 per cent, for those deeper than
5,000m it increases to 28 per cent (from 28 per cent and 15 per cent
respectively). Tax on oil production from horizons shallower than 5,000m
increases to 45 per cent (previously 39 per cent), for those deeper than 5,000m
it increases to 21 per cent (previously 18 per cent). For gas wells put on
stream after 1 August 2014, a coefficient of 0.55 will be applied against the
rates for the first 2 years of production.

The Company believes that at current production levels, given its current cash
position of $47.0 million (excluding $1.0 million of the Group's share of cash
and cash equivalent in joint ventures and excluding $5.0 million of
yield-generating fixed income investments), the increase in rates until 
31 December 2014 will not have a material effect on the Group's financial
position, operations or work programme.

The Board of Cadogan will continue to evaluate the impact of the changing
fiscal environment and take such operational and financial measures as it may
consider necessary to protect the interests of the Company and its shareholders.

Further to the Company's operations update dated 15 May 2014, Cadogan now
expects a slight delay for commencing drilling its first well in Debeslavetaska
to November 2014 (previously late September), due to reverification of the
drilling coordinates.

Cadogan is pleased to report a further increase in stable production in
Monastyretska to 50 bopd. Performance tests continue.

Enquiries:

Cadogan Petroleum Plc                                    [phone] 

Bertrand des Pallieres    Chief Executive Officer
Laurence Sudwarts         Company Secretary

Cantor Fitzgerald Europe                                 [phone]

David Porter
Richard Redmayne