17 May 2017

     Publication of Report on Payments to Governments

                         Cadogan Petroleum plc (the "Company")                     

                    Consolidated report on payments to governments                 

    Cadogan Petroleum plc presents below its consolidated report on payments to
    governments for the year ended 31 December 2016, for activities related to
    exploration, development and extraction of oil and gas resources.

    The Company has prepared the following consolidated report in accordance with
    DTR 4.3A of the Financial Conduct Authority Disclosure and Transparency Rules
    and in compliance with the Reports on Payments to Governments Regulations 2014
    (SI 2014/3209), as amended by the Reports on Payments to Governments
    (Amendment) Regulations 2015 (SI 2015/1928).

    Basis of preparation

    The Company discloses below payments made to governments of the Group's
    subsidiaries involved in extractive activities. The term 'government' includes
    a department, agency or entity that is controlled by the government authority.

    Reporting currency

    Where payments have been made in currencies other than the reporting currency
    (USD), the exchange rate existing at the time the payment is made has been
    used.                             

    Payment types disclosed at project level

    "Project" is defined as "operational activities governed by a single contract,
    license, lease, concession or similar legal agreements and form the basis for
    payment liabilities with a government". Where multiple such agreements are
    substantially interconnected, this was considered a project for the purpose of
    this report.

    The payments are presented on a cash basis, net of any interest and penalties
    on late tax payments or on underpaid tax.

    There were no payments in kind made to a Government during the year.

    The following payment types are disclosed for legal entities involved in
    extractive activities for the year ended 31 December 2016:

    Production taxes

    Payments to governments in relation to revenue or production generated under
    licence agreements.      

    Excluded amounts

    Taxes levied on consumption such as value added taxes, personal income taxes,
    sales taxes, property and environmental taxes have not been included in this
    report.

    We did not include into the summary corporate income tax payments and licence
    fees paid because in 2016 they were below the threshold of £86 thousand ($131
    thousand based on average exchange rate for the year).

    Payments summary

                                                                                         
    Payments to governments made during the year ended 31 December 2016:                 
                                                                                         
                                                          Production taxes          Total
                                                                                         
    Governments                                                      $'000          $'000
                                                                                         
    Ukraine                                                                              
                                                                                         
    State treasury: State budget                                       954            954
                                                                                         
    Total Ukraine                                                      954            954
                                                                                         
    Grand Total                                                        954            954
                                                                                         
    Payments to governments by project type made during the year ended 31 December       
    2016:                                                                                
                                                                                         
                                                          Production taxes          Total
                                                                                         
                                                                     $'000          $'000
                                                                                         
    Ukraine                                                                              
                                                                                         
    Debeslavetska Production licence area                              488            488
                                                                                         
    Monastyretska licence area                                         292            292
                                                                                         
    Cheremkhivska Production licence area                              174            174
                                                                                         
    Slobodo-Rungurska licence area                                                       
                                                                         -              -
                                                                                         
    Total Ukraine                                                      954            954

    For further information, please contact:

    Cadogan Petroleum plc

    Guido Michelotti, Chief Executive Officer
    +380 (44) 594 5870

    Ben Harber, Company Secretary
    +44 0207 264 4366

    Cantor Fitzgerald Europe

    +44 (0) 20 7894 7000
    David Porter
    Sarah Wharry

    This information will be available shortly on the National Storage Mechanism.