Global Process Systems Inc - Settlement update

Cadogan Petroleum plc ("Cadogan") ("the Company")

Global Process Systems Inc ("GPS")

Settlement update

Under the terms of the previously advised settlement agreement between the Company and Global Process Systems Inc ("GPS"), a further payment of $10m was due to be paid to the Company on 14 February 2011 but has not yet been received. A cure period will expire on 18 April 2011. Under the terms of the agreement, GPS took the gas plants back into stock and undertook to pay the Company $37.5 million. To date, $7.5 million of this sum has been received, with the balance due in three equal tranches, each of $10 million, during 2011. The Company retains legal title to the plants until the final payment has been received.

The Company is in discussions with GPS regarding the overdue payment. Pending a conclusion of these discussions, release of Cadogan's preliminary financial results have been delayed but will occur as soon as practical and, in any event, prior to the end of April.

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