REG-Cadogan Petroleum: Operational Update

Cadogan Energy SolutionsAnnouncement

10/02/2020 07:05

Press Release
                                                                                                                                  
10 February 2020

This announcement contains inside information as defined under the Market
Abuse Regulations n. 596/2014

Cadogan Petroleum Plc

(“Cadogan” or the “Company”)

Operational Update

Cadogan Petroleum plc, the London Stock Exchange listed independent oil and
gas company, is pleased to provide the following operational update post
year-end.

Net production for 2019 averaged 288 boepd, which is 15% above average
production in 2018 and 86% above average production in 2017.

The increase in production was achieved despite a 30-day shutdown of Blazhiv
oil field (formerly Monastyrestka license) in November and December 2019, and
the shutdown of Blazhiv-3 and Blazhiv-Monastyrets-3 wells, due to the expiry
of the lease contract. The extension of this contract is currently being
negotiated and is expected to be finalised soon.

Operations, which included drilling the successful Blazh-10 well, were
delivered in an incident free working environment. Emissions to the atmosphere
increased to 85.7 tons of CO2 equivalent/boe. Actions are currently being
performed to reduce the intensity ratio.

Production for 2019 was sold at an average price of $47/boe, which is
approximately 10 % lower than in the previous year, in line with lower average
global crude prices.

The conversion of the Monastyrestksa exploration license into the 20-year
Blazhiv production license was successfully completed, while the process for
the Bitlyanska 20-year exploration and production license is at the final
stage. The Company has already secured all intermediary approvals, including
those from the regional authorities and is expecting the decision of the
Licensing Authority of Ukraine. Further updates with regards to the Bitlyanska
exploration and production license, as well as the Blazhiv-3 and
Blazhiv-Monastyrets-3 lease negotiations will be announced as and when
appropriate.

ENDS

About

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

For further information, please contact:

Cadogan Petroleum plc
Fady Khallouf                    Chief Executive
Officer                  fady.khallouf@cadoganpetroleum.com
Ben Harber                         Company Secretary
                        +44 0207 264 4366

Cantor Fitzgerald Europe, Broker to Cadogan Petroleum plc

David
Porter                                                                                      
+44 (0) 20 7894 7000



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