Operations Update

CADOGAN PETROLEUM PLC

Operations Update

12 April 2016

Cadogan Petroleum plc (“Cadogan” or the “Company”), an independent oil and gas exploration, development and production company with onshore gas, condensate and oil assets in Ukraine, is pleased to advise that Brend Vik has completed its re-evaluation of the Company’s reserves and resources in Ukraine.

A summary of the revised reserves and resources as at 31 December 2015 is presented in the table below:

					Reserves & Resources (MMboe) (net to Cadogan)
Licence	Type	Working interest (%)	Area (km2)	Current net production (boepd)	3P reserves	2C contingent resources	Best estimate prospective resources	Expiry date
Monastyretska	Oil	99.2	25	48	4.5	0.6	0.2	Nov. 2019
Debeslavetska (Production)	Gas	99.2	27	60	0.2		0.1	Nov. 2026
Debeslavetska (Exploration)	Gas	99.2	218					Sept. 2016
Cheremkhivska	Gas	54.2	119	16	0.01		0.6	May. 2018
Bitlyanska	Gas & Condensate	99.2	390		3.2	14.8	4.5	Dec. 2019
Slobodo Rungurska	Oil	100	101				3.5	Apr. 2016
Pokrovska	Gas & Condensate	70	50		0.8	14.7	0.6	Aug. 2016
Total current licences			930	124	8.7	30.1	9.5
Pirkovska	Gas & Cond	100	88		12.7	6.2	5.0	*Expired
Zagoryanska	Gas & Cond	100	34		1.6	2.6		**Expired
Total licences subject to renewal			122		14.3	8.8	5.0
Total			1,052	124	23.0	38.9	14.5

* Application for 20 year production licence filed ** Application for a 20 year production licence filed by Cadogan only (100% P.I.) as Eni elected not to do so

The evaluation has broadly confirmed the Company’s 1P reserves at 0.4 MMboe and has identified 3P reserves and 2C contingent resources which are significantly greater than Management estimates as notified on 22 December 2015 (and detailed in Appendix A). This increase is primarily concentrated in the Monastyretska and Bitlyanska licenses in Western Ukraine. This is offset by a downward revision of the best estimate prospective resources across the portfolio which is primarily concentrated in the three Eastern Ukraine licenses. This downward revision is principally a result of the low oil price environment and a more conservative interpretation of the available geological and geophysical data.

In conjunction with this update, the Company is pleased to advise that it has today published an updated Company presentation reflecting the revised figures which is available on its website at: www.cadoganpetroleum.com

Guido Michelotti, CEO, commented:

“We are pleased with the significant upward revision of the Monastyretska and Bitlyanska reserves against previous management estimates, which will prolong the life of the Company’s producing fields and provide access to further production upside. Cadogan intends to work towards exploiting this upside while maintaining our focus on exercising financial discipline, in order to preserve our cash resources for further growth opportunities in the current oil price environment.”

Enquiries:

Cadogan Petroleum plc	[phone]
Guido Michelotti, Chief Executive Officer Marta Halabala, Company Secretary
Cantor Fitzgerald Europe	[phone]
David Porter Sarah Wharry

                                                                                 


 Appendix A

Management reserves and prospective resources estimates, 22 December 2015

						Reserves & Resources (MMboe) [(net to Cadogan)]
	Licence	Type	Working interest	Area (km2)	Current net production (boepd)	3P reserves	2C contingent resources	Best estimate prospective resources
Eastern Ukraine	Pokrovska	Conventional gas	70.0	50	-	2.6	-	73.6
	Pirkovska	Conventional gas	100.0	72	-	11.3	6.6	67.9
	Zagoryanska	Conventional gas	100.0	50	-	1.6	2.2	-
Western Ukraine	Monastyretska	Conventional oil	99.2	26	48	2.7	-	3.0
	Debeslavetska (prod.)	Conventional gas	99.2	27	66	0.8	-	-
	Debeslavetska (exp.)	Conventional gas	99.2	218	-	-	-	1.0
	Cheremkhivska	Conventional gas	53.4	119	8	0.2	-
	Bitlyanska	Conventional oil	99.8	390	-	-	1.2	66.6
	Slobodo Rungurska	Conventional oil	100.0	101	-	-	-	8.0
			Total	1,052	122	19.2	10.1	220.0