Operations Update

23 September 2013 Cadogan Petroleum plc ("Cadogan" or "the Company") Cadogan Operations Update Following the Company's announcement on 16 July 2013 regarding operations atBorynya 3, the new logs run in the upper part of the well-site have confirmedthe presence of gas and condensates and porosity in the range of 10% to 15%.Some difficulties and delays were caused by unexpected bottom hole assemblyfailure causing brine bleeding which inhibited the use of pressure measurementfor more accurate test interpretation. Two intervals have been tested so far, 2745-2685m and 2935-2890m. In each casetesting resulted in a flow of gas and condensate that was consistent butnon-sustainable; as condensate increased, the gas decreased and afterapproximately 48 hours, all gas and condensate flow ceased. Gas was flared and liquid hydrocarbons were collected for analysis.Hydrocarbons were confirmed as oil (30 API) and condensate (48 API). Pressurebuild-up and reservoir characterization were however hampered by the leakage ofbrine in each interval tested. Further testing in the upper interval has begun, utilising a simpler string tore-shoot those layers with best porosity as identified by logs. This processwill include an acid wash to improve flow and reduce formation surface damage.The Company expects to be able to announce the results from this furthertesting within a few weeks. Due to the clear presence of hydrocarbons, planned operations for informationgathering on the production potential and assessment of future operations willcontinue. Due to the presence and nature of fluids and the petro-physicalcharacteristics of the formation itself, the Company anticipates the need for afuture acid-frac in order to obtain and support sustainable and commercialproduction at Borynya 3. Entry of the deeper intervals, down to circa 4,300m, is planned for 2014 with asuitable rig for such a heavy work-over. An anticipated acid-frac will also beplanned during those operations. Enquiries to: Cadogan Petroleum Plc +380 44 584 4979Bertrand des PallieresChief Executive Officer Cantor Fitzgerald Europe +44 (0) 20 7894 7000David PorterRichard Redmayne Bankside Consultants +44 (0) 207 367 8888Simon Rothschild