Cadogan Petroleum plc announced update of its operational activities at its oil and gas fields in Western Ukraine for 2016. Net production for 2016 averaged 116 boepd, which is 6% higher than the average for 2015 notwithstanding the maturity of the producing assets; while production increased by 6%, emissions to the atmosphere, measured in ton CO2/boe, were further reduced by 10% over 2015 levels. The impact of this increased production on the Company's income statement is expected to be compounded this year by a reduction in the royalty rate for oil wells from 45% to 29%, which is effective as from January 1st, 2017, and by the expected oil production from the re-entry of two old, suspended wells in the Monastyretska licence.

The re-entries, which are part of Cadogan's strategy to sustain production while minimizing capital expenditures, are planned for the first quarter 2017.