Successful Workover Campaign Increases Production

Cadogan Petroleum Plc - Successful Workover Campaign Increases Production

PR Newswire

London, May 29

Cadogan Petroleum Plc

(“Cadogan” or the “Company”)

Successful Workover Campaign Increases Production

Cadogan Petroleum plc (“Cadogan”), an independent, oil & gas company listed on the London Stock Exchange, is pleased to announce that the work-over on the Blazh-Mon 3 well has been successful, resulting in doubling of its production. This follows the two previous successful work-overs in the three-well programme, which combined have seen oil production from the Monastyretska licence in Western Ukraine increase fourfold. The three-well work-over campaign was completed on time and within budget, with minimal capital deployment.

After the successful work-over and stimulation of the Blazh 1 and Blazh 3 wells, the third well, Blazh-Mon 3, was reperforated, stimulated and is producing 24 bpd of oil.

Overall, the work-over campaign has increased production from the Monastyretska license to 225 bpd. This represents a 150 % increase over the oil production at the beginning of the work-over campaign and a fourfold increase over the stable 45 bpd which the field had been producing a year and a half ago. With the addition of gas production from Debeslavetska, Cadogan’s net, oil and gas combined production is currently 285 boepd.

This successful campaign has been completed without accidents and reinforces Management’s opinion that the license has a upside potential.

The Monastyretska license is located in the L’viv region of Western Ukraine. Oil produced from the field has a negligible gas and water content, is treated locally and exported by truck by the buyers. The Group is the owner of the license. The Blazh 3 and Blazh-Mon 3 wells are rented from Ukrnafta.

Commenting, Guido Michelotti, CEO of Cadogan, said:

“This result exceeds the Company’s expectations and put Cadogan on track to deliver on its 75% increase in production. It also reinforces the value of the Company’s strategy of creating a solid base for growth by monetizing the value of its Ukrainian assets with minimal deployment of capital”

-ENDS-

About

Cadogan is an independent oil and gas company which operates exploration and production licenses in Western Ukraine, conducts gas trading operations, and provides services to E&P companies.

Ukrnafta is the largest oil producer in Ukraine. They operate 82 licences and own a fleet of 46 drilling rigs.

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