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Operational Update

19th Mar 2012 07:00

Cadogan Petroleum plc (`the Company' or `Cadogan')

Operational update

Pokroskvoe Field

Cadogan reports having been advised by Eni S.p.A (`Eni') that, after analysis of the results for the Pokroskvoe 1 and Pokroskvoe 2a wells, Eni do not intend to exercise their option to acquire a further 30% of the share capital of Pokroskvoe Petroleum BV. The option formed part of the transaction entered into with Eni in July 2011.

As advised in the Company's announcement dated 16 February 2012 the logs acquired during the drilling programme indicated the presence of hydrocarbons in the lower part of the well. A decision had been taken to deepen the Pok 2a well by approximately 350 metres. Whilst pulling out of the hole the running string became stuck and subsequent fishing operations with the limited equipment available in country did not allow the running tool to be recovered. Cadogan management will continue to evaluate the most effective option, amongst those available, to re-enter the well.

Ends

Contacts

Cadogan Petroleum Plc +44 (0) 207 487 8301

Bertrand des Pallieres Chief Executive Officer

Stefan Bort Company SecretaryBankside +44 (0) 207 397 8888Simon Rothschild

XLON

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