REG-Cadogan Petroleum: Operations Update <Origin Href="QuoteRef">CADP.L</Origin>

Cadogan Energy SolutionsAnnouncement

12/04/2016 10:40

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   Area (km2) Current net 3P reserves      2C         Best     Expiry date
                                           interest              production               contingent   estimate              
                                              (%)                  (boepd)                resources   prospective            
                                                                                                       resources             
                                                                                                                             
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 &            99.2       390                     3.2         14.8         4.5      Dec. 2019 
                              Condensate                                                                                     
                                                                                                                             
Slobodo Rungurska            Oil              100        101                                              3.5      Apr. 2016 
                                                                                                                             
Pokrovska                    Gas &             70         50                     0.8         14.7         0.6      Aug. 2016 
                              Condensate                                                                                     
                                                                                                                             
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                   +380 (44) 594 5870                     
                                                                               
Guido Michelotti, Chief Executive                                              
Officer                                                                        
Marta Halabala, Company Secretary                                              
                                                                               
Cantor Fitzgerald Europe                +44 (0) 20 7894 7000                   
                                                                               
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    Current   3P reserves     2C        Best    
                                                         (km2)     net                 contingent  estimate  
                                                                production             resources  prospective
                                                                 (boepd)                           resources 
                                                                                                             
Eastern Pokrovska     Conventional gas       70.0         50        -          2.6         -         73.6    
Ukraine                                                                                                      
        Pirkovska     Conventional gas      100.0         72        -         11.3        6.6        67.9    
                                                                                                             
        Zagoryanska   Conventional gas      100.0         50        -          1.6        2.2          -     
                                                                                                             
Western Monastyretska Conventional oil       99.2         26        48         2.7         -          3.0    
Ukraine                                                                                                      
        Debeslavetska Conventional gas       99.2         27        66         0.8         -           -     
        (prod.)                                                                                              
                                                                                                             
        Debeslavetska Conventional gas       99.2         218       -           -          -          1.0    
        (exp.)                                                                                               
                                                                                                             
        Cheremkhivska Conventional gas       53.4         119       8          0.2         -                 
                                                                                                             
        Bitlyanska    Conventional oil       99.8         390       -           -         1.2        66.6    
                                                                                                             
        Slobodo       Conventional oil      100.0         101       -           -          -          8.0    
        Rungurska                                                                                            
                                                                                                             
                                            Total        1,052     122        19.2        10.1       220.0   



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