Trading Statement

Cadogan Petroleum plc "Cadogan" or "the Company"

Operational update

Cadogan advises that it has decided to temporarily suspend operations on its
Pokroskvoe 2a well. This well has been drilled to 4,783 metres into the V22
level of the Upper Visean that exhibited gas shows during drilling and led to a
7" liner being run in and cemented. The logs acquired indicated the presence of
hydrocarbons in the lower part of the well and a decision was taken to deepen
the well by approximately 350 metres. Whilst pulling out of the hole the
running string became stuck and subsequent fishing operations with the limited
equipment available in country has not allowed the running tool to be
recovered. Management will evaluate the most effective option, amongst those
available, to re-enter the well.

Following management review a decision has been made to move the drilling rig
to the planned Zagoryanska 11 well, a 5,160 metre well into the Upper Visean.

The workover programme on Zagoryanska wells 1, 2 and 8 continues.

Ends

Contacts

Cadogan Petroleum Plc [phone]

Bertrand des Pallieres Chief Executive Officer

Stefan Bort Company Secretary

Bankside [phone]

Simon Rothschild