Interim Management Statement

Cadogan Petroleum plc ("Cadogan", "the Company" or "the Group") Interim Management Statement for the period from 1 January 2014 to 19 May 2014 Introduction Cadogan published its Annual Financial Report for the year ended 31 December2013 on 28 April 2014. Political situation We continue to monitor the current political situation in Ukraine carefully butthere have been no disruptions to the Company's operations, or ability tooperate effectively, in any of our operating locations. As a result of therecent political and economic turmoil in Ukraine, there has been a significantdevaluation of the Ukrainian Hryvnia against the US Dollar (approximately 40%since 1 January 2014) which, while affecting the carrying value of the Group'sassets, has a correspondingly positive impact on the Group's local currencyrunning costs. Financial position As at 19 May 2014, the Group had current cash and cash equivalents ofapproximately $47.8 million (excluding $1.3 million of the Group's share ofcash and cash equivalent in joint ventures and excluding $5.1 million ofyield-generating fixed income investments). Executive Summary The beginning of 2014 has been broadly positive for the Group, with several newprospects having been identified in our license areas following further seismicacquisition and reinterpretation during the course of 2013 and early 2014 andfurther significant reductions to the Company's cost base in line withmanagement's plan. Monastyretska has now returned to and even surpassedprevious production levels. Overall the Company remains in a strong financialposition, with no debt and substantial cash resources. 2014 has seen the continuation of operations as planned on the Company's assetsin the East and the West of the Country. Revenue, largely reflecting productionfrom the Group's Cheremkhivska, Debeslavetska and Monastyretska fields andservices provided to third parties, was stable. Operations The Group continued to operate safely and efficiently throughout the period. Asanticipated, the principal focus for early 2014 was to continue reducing therisk of present and anticipated operations while maximising existing productionpotential. With new prospects having been identified in Pokrovskoe andPirkovskoe following 3D seismic interpretation and continuing workover activityon Pirk 1 since October 2013, with so far promising indications, the de-riskingand efficiency targets set for our technical operations and sub-surfaceexplorations teams have largely been met. Borynya 3 has thus far proved disappointing, with lack of data from previousdrilling activities having hampered our current efforts. However, we remainconfident in its potential value and our assessment work continues. Productionhas increased moderately in Debeslavetska while potential gas production fromCheremkhivska appears promising at this stage. In Monastyretska production hasreached 30 bopd and is expected to rise further. The re-evaluation of theGroups' assets continues and we remain positive in our outlook. Pokrovskoe field On 6 July 2011 Eni S.p.A ("Eni"), the major Italian integrated energy company,acquired a 30% interest in this licence and the associated work obligationshave now been fulfilled. Following the 3D seismic interpretation, new prospectshave been identified in the shallower formations. Zagoryanska field Five wells were drilled in the field and gas encountered in the Upper and LowerVisean and Tournaisian reservoirs, and in one well hydrocarbons have beenencountered in the Devonian reservoir without achieving commercial production. As at 31 December 2013, the Group assessed the recoverability of the carryingvalue of the development and production assets related to the Zagoryanskalicence, resulting in the impairment of the mentioned assets to nil. Pirkovskoe field Recent analysis shows great promise in the upper intervals. Following athorough study of Direct Hydrocarbon Indicators (DHI) and 3D Amplitude VersusOffset (AVO) reconnaissance, a drillable prospect has been identified and itscharacterization is currently underway, showing good prospectivity andsignificant potential size. A work-over activity on Pirk 1 well started in October 2013 and is stillcontinuing while 3D seismic reinterpretation is ongoing. Borynya and Bitlya fields Borynya 3 well was re-entered and tested in the Krasno 1 interval withpromising results. The decision was made to put the fracturing job on hold dueto lack of sufficient data from previous drilling activity. Minor fields Cadogan owns exploration, development and production licences either directlyor through subsidiaries or joint ventures in several minor fields, of which twoare currently in commercial production (Debeslavetska and Cheremkhivska) andone (Monastyretska) is in pilot commercial development. In Debeslavetska, all the updated DHI reconnaissance technologies have beenapplied with so far interesting results and 2D seismic acquisition wascompleted at the end of March. Three new, drillable prospects have now beenidentified with the best of them currently undergoing further scrutiny. In addition some relatively deeper (circa. 600m) potential horizons now appearlikely and if our analysis proves correct, will significantly improve potentialresources in the area. The first well in Debeslavetska will be drilled in late September of this yearand the eventual tie-in to the existing production facilities will takeapproximately 4 weeks. In Monastyretska the planned formation light stimulation was successfullycompleted in mid-March, immediately increasing production from 20 to 30 bopd.On 13 May 2014 a sucker rod pump was installed and performance tests arecurrently ongoing. First results are expected imminently. Negotiations with local operators for the acquisition of two further, existingwells, with the aim to bring them back to production, are currently underway.Performance monitoring of these three wells will give the Company a betterunderstanding of the reservoir characteristics and behaviour, allowing us toformulate future plans to increase production further. Enquiries to: Cadogan Petroleum Plc +380 44 584 4979 Bertrand des Pallieres, Chief Executive Officer Cantor Fitzgerald Europe +44 (0) 20 7894 7000 David PorterRichard Redmayne