REG-Cadogan Petroleum: Operational Update

Cadogan Energy SolutionsAnnouncement

27/09/2018 10:05

Press Release   27 September 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”)

Operational update

Resumption of drilling activity  &  results of reservoir study

Cadogan Petroleum plc. (“Cadogan”), an independent, diversified, oil & gas
company listed on the London Stock Exchange, is pleased to provide the
following operational update.

Drilling operations have commenced on the shallow Vovche-2 well on Bitlyanska
licence. The well is designed to test the potential of satellite prospects
around an established, old oil field. The well is anticipated to take 20 days
to drill and will then be put on production if successful.

A heavier rig is being selected to drill the Blazh-10 well on the
Monastyretska licence as planned. The well will target the Yamna sandstones,
the reservoir of the three currently producing wells, at a depth of about
3,500 metres. The well is expected to spud in November and is anticipated to
take three months to drill. This well will also be put on production if
successful.

The Vovche-2 well and the Blazh-10 well fullfil the Company’s remaining
commitments on the Bitlyanska and Monastyretska exploration licences, a
prerequisite to convert them into production licences.  

The Monastyretska reservoir study has been completed, as planned. The study
has highlighted significant upside potential from infill drilling and the
implementation of a water injection scheme. The study  predicts that infill
drilling can add up to 2.3 million barrels (MBbl) to the cumulative production
of a do-nothing scenario with a further 2.1 MBbl coming from the
implementation of water injection. Future cumulative production of a
do-nothing scenario, i.e. from the three exsting wells only, is predicted to
be 1.2 MBbl and is in line with the current estimation of 2P reserves.

The study has been conducted using a reservoir simulation model validated by
matching the historical performances of the existing three producing wells. 
An assessment of the cost of the various scenarios is on-going in order to
select the optimal development scheme.

Commenting, Guido Michelotti, CEO of Cadogan, said:

“We are encouraged by the results of the reservoir simulation study. It
confirms our expectation of upside potential on the core Monastyretska licence
and sets the direction for its optimal exploitation. The field is geologically
complex, but can deliver good results if carefully studied and produced under
best-in-class reservoir management, as demonstrated by our recent string of
successful work-overs, post which it continues to produce at a stable rate of
212 bpd. We are also excited by the resumption of drilling operations after a
pause of three years and look forward to progressing these further.”

-ENDS-

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 Tulloch                           +44 (0) 20 7894 7000  



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