Operations Update

CADOGAN PETROLEUM PLC Cadogan Operations Update The Company can confirm that there have been no disruptions to its operationsor to the effective management of its licences during the recent period ofinstability. Eastern Licences Our recent analysis shows great promise in the upper intervals, in particularin Pirkovskoe. Following a thorough study of Direct Hydrocarbon Indicators(DHI) and 3D Amplitude Versus Offset (AVO) reconnaissance, a drillable prospecthas been identified and its characterization is currently underway, showinggood prospectivity and significant potential size. Western Licences In Debeslavetska, all the updated DHI reconnaissance technologies havesimilarly been applied with so far interesting results. Following some minordelay due to the current instability in the region, the 2D seismic acquisitionwas completed 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 May 13th a sucker rod pump was installed and performance tests are currentlyongoing. First results are expected by the end of next week. 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: Cadogan Petroleum Plc +380 (44) 591 0390 Bertrand des Pallieres Chief Executive OfficerLaurence Sudwarts Company Secretary Cantor Fitzgerald Europe +44 (0) 20 7894 7000 David PorterRichard Redmayne