Operations Update

CADOGAN PETROLEUM PLC                             

                           Cadogan Operations Update                           

The Company can confirm that there have been no disruptions to its operations
or to the effective management of its licences during the recent period of
instability.

Eastern Licences

Our recent analysis shows great promise in the upper intervals, in particular
in Pirkovskoe. 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.

Western Licences

In Debeslavetska, all the updated DHI reconnaissance technologies have
similarly been applied with so far interesting results. Following some minor
delay due to the current instability in the region, the 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 May 13th a sucker rod pump was installed and performance tests are currently
ongoing. First results are expected by the end of next week.

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:

Cadogan Petroleum Plc                                    [phone]    
                                                                               
Bertrand des Pallieres    Chief Executive Officer
Laurence Sudwarts         Company Secretary

Cantor Fitzgerald Europe                                 [phone]  
                                                                               
David Porter                                                                   
Richard Redmayne