CADOGAN PETROLEUM PLC                             

                                   Operations Update                               

    8 July 2016

    Cadogan Petroleum plc ("Cadogan" or the "Company"), an independent oil and gas
    exploration, development and production company with onshore gas, condensate
    and oil assets in Ukraine, is pleased to announce an update on its operations
    in Ukraine. 

    Oil & Gas Production
    The Company's producing assets in Ukraine have continued with minimal
    interruption. An accurate reservoir management program has kept the average
    production in the first six months at 115 boepd which is slightly (5.5%) higher
    than the average production in the year to 31 December 2015 and 24% higher than
    the average production in the first six months of 2015.  Whilst production
    levels have been marginally ahead of the level of last year, revenues have
    dropped due to lower realised oil and gas prices.

    Oilfield Services
    Cadogan's wholly owned service subsidiary, LLC Astro Service, has been working
    on its portfolio of orders with a focus on the plugging & abandonment of old
    wells and restoration of sites. Management expects a significant contribution
    to the Group's full year results from this business segment.

    Gas Trading
    The volume of gas traded has been lower than in the corresponding period of
    last year. The primary reason for the lower traded volumes was a loss of two
    large clients switching to new suppliers. Cadogan has however made progress
    with the recovery of receivables and optimization of pre payments from the gas
    trading division since 31 December 2015 (which stood at $11.7 million), which
    has had a net positive impact on the Company's cash balances.

    Outlook and Strategy
    Through the first part of the year Cadogan has continued to actively review
    opportunities to expand and to geographically diversify its portfolio of oil
    and gas assets. In particular in Ukraine, Cadogan has looked at either buying
    into licences or accessing third parties' wells to be re-entered applying the
    same techniques which proved successful on the Monastyretska license.

    Efforts to preserve cash have continued and have been successful. Net cash
    (cash and cash equivalents less  short term borrowings) has increased from
    $36.5 million as of 31 December  2015 to $40.6 million as of June 30 2016 as a
    result of the optimization of working capital.

    Guido Michelotti, Cadogan' CEO commented:

    "The first half of 2016 has been another challenging period for oil and gas
    companies operating in Ukraine as they have been exposed to uncertainties in
    the outcome of the licensing processes and to a tax regime which has remained
    punitive.  Cadogan has actively engaged the authorities at all levels to
    protect its expired licenses and to bring the royalties down to pre-Maidan
    level.

    This has not distracted management and staff from the efforts to diversify and
    efficiently manage the existing portfolio. I am quite pleased by the increase
    of both production and net cash over the same period last year as we continue
    to focus on preserving our cash resources to pursue opportunities to add value
    to the portfolio."


    Enquiries:

    Cadogan Petroleum plc                   +380 (44) 594 5870                     
                                                                                   
    Guido Michelotti, Chief Executive                                              
    Officer                                                                        
    Marta Halabala, Company Secretary                                              
                                                                                   
    Cantor Fitzgerald Europe                +44 (0) 20 7894 7000                   
                                                                                   
    David Porter                                                                   
    Sarah Wharry