REG-Cadogan Petroleum: Delayed approval of the application to renew

Cadogan Energy SolutionsAnnouncement

15/05/2018 16:50

15 May 2018                                                                                                          
 This announcement is deemed to contain Inside Information as defined under the Market Abuse Regulations n. 596/2014  

Cadogan Petroleum Plc

(“Cadogan” or the “Company”)

Delayed approval of the application to renew Cheremkhivsko-Strupkivske (Cher)
license

Cadogan Petroleum plc (“Cadogan”), an independent, oil & gas company
listed on the London Stock Exchange, announces that it has been notified by
the license holder Westgasinvest LLC (“WGI”) that the application to renew
Cheremkhivsko-Strupkivske (“Cher”) production license has not been awarded
by the State Geological Service of Ukraine (“SGS”) within the expiry date
of 14 May 2018.

WGI believes that SGS has not acted in line with the current legislation and
is evaluating all possible options including filing an appeal in an
administrative Ukrainian court. In the mean while it has asked the Production
Operator, a wholly owned subsidiary of Cadogan, to halt production operations
and put the facilities in preservation mode, ready to be re-started upon
receiving the renewal of the license.

The impact on Cadogan of the shut-down of Cher is a loss of production of
about 15 boepd  (net to Cadogan)

Commenting, Guido Michelotti, CEO of Cadogan, said:

“The delayed approval of the application to renew Cher license will have a
limited impact on Cadogan’s p/l given the marginal production volume
involved and the current severe taxation regime.

-ENDS-

About

Cadogan is an independent oil and gas company which operates exploration and
production licenses in Western Ukraine, conducts gas trading operations, and
provides services to E&P companies.

Westgasinvest (“WGI”),  a company participated by Eni Ukraine Holdings
BV, 50.01%, NJSC “Nadra Ukrayny”, 34.99%, and Cadogan Ukraine Holdings
Limited 15%., is the license holder of Cheremkhivsko-Strupkivske license.

Cheremkhivsko-Strupkivske (“Cher”) license was awarded in 2002 to NJSC
“Nadra Ukrayny”’s subsidiary SE “Zahidukrgeologia“ and transferred
to WGI in 2012 within the context of the Eni-operated shale gas project. A
subsidiary of Cadogan owns a 54.2% interest in the license.

For further information, please contact:

 Cadogan Petroleum plc                                                     
 Guido Michelotti           Chief Executive Officer  +380 (44) 594 5870    
 Ben Harber                 Company Secretary        +44 0207 264 4366     
                                                                           
 Cantor Fitzgerald Europe                                                  
 David Porter/Nick Tullock                           +44 (0) 20 7894 7000  



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