Litigation settlement agreement

17 December 2010 

Cadogan Petroleum PLC ("Cadogan" or the "Company")

Litigation settlement agreement

Cadogan announces that it has entered into a settlement agreement with its former Chief Executive Officer, Mark Tolley and five other parties associated with him. Under the terms of the settlement the dispute between the parties announced on 26 June 2009 has been concluded. As a result of the settlement Cadogan will receive cash and assets to the value of approximately US$4 million; this includes the release to Cadogan of funds of approximately US$3 million held by the English Court following a settlement with other parties earlier this year. These assets will be realised during 2011. As a result, Cadogan will withdraw its action against Mr Tolley and the other parties and Mr Tolley and another party will also withdraw their counterclaim. No party has admitted any liability or any wrongdoing.

Litigation against VP Vivcharyk, the former Chief Operating Officer, and certain other defendants remains ongoing.

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