Cadogan Petroleum Correction: Interim Management Statement

 
TIDMCAD 
 
30 May 2013 
 
The Company announces that the Interim Management Statement announcement 
released at 10:37am on Friday 17 May 2013 under reference PRNUK-1705131036-6F91 
contained incorrect information regarding the size of the shale gas position in 
the Lviv Basin. The correct size of the position is 3,800 sq. km. 
 
All other information in the announcement was correct. A copy of the full 
amended announcement is below: 
 
               Cadogan Petroleum plc ("Cadogan" or "the Group") 
 
   Interim Management Statement for the period from 1 January to 17 May 2013 
 
Introduction 
 
Cadogan published its Annual Financial Report for 2012 on 25 April 2013. 
 
Financial position 
 
At 17 May 2013 the Group had current cash and cash equivalents of approximately 
$66.8 million. 
 
Operations 
 
The Group continued to operate safely and efficiently throughout the period. 
 
As outlined in the Annual Report in the Chairman's Statement and Chief 
Executive's Review (and as notified on 25 April 2013), in 2012 the Company 
overhauled its technical operations and sub surface exploration teams in light 
of disappointing results on its Pokrovskoe and Zagoryanska licences. Following 
completion of that process we continue to re-focus our operations on those 
licences where management believes that new and potentially economically viable 
prospects exist. 
 
Rig site preparation to re-enter the Borynya 3 well is almost complete and the 
Group's Astro Service rig is expected to be ready on location at the beginning 
of June. The gas shows, evident from previous logging and drilling data, are 
encouraging albeit further work will be needed to ascertain the commercial 
viability of the prospect. On the Monastyretska licence in Western Ukraine, 
operations at the Blazhiv 1 well continue to demonstrate positive results. 
After an initial period of production at 5 cubic metres per day, the well is 
now stabilised at 3.5 cubic metres per day and an evaluation for further 
improvement, as well as the re-entry of a further two wells, is ongoing. In Zag 
3 an intervention to open the V19 level to production was completed but testing 
did not produce gas at a commercial rate. V18 produced gas at a low rate and we 
are in the process of evaluating a rig-less chemical wash intervention to 
enhance production. Work with our joint venture partner Eni on assessing the 
Zagoryanska and Pokrovskoe licences continues. In general our Ukrainian 
operations in 2013 are expected to focus on shallow prospects in our western 
assets that require less capital intensity than our eastern, deep prospects. 
 
Shale Gas 
 
Studies are ongoing on our 3,800 sq. km position in the Lviv Basin, with the 
aim of defining the best area to start the operations for the first exploration 
well. 
 
Litigation 
 
As previously announced, Cadogan has reached a settlement with Global Process 
Systems LLC ("GPS") by way of an Agreement with GPS for the purchase of two gas 
processing plants for the sum of $29.5 million. The completed sale represents a 
full and final settlement of all claims and liabilities between the two 
parties. 
 
Service Business 
 
Partly in order to remedy what we perceive as a shortage of adequate investment 
in technical services in the Ukrainian oil and gas sector, Cadogan has invested 
limited resources in oilfield services in Ukraine. This initiative has 
generated over US$500,000 gross revenues for the Group in the past 6 months and 
we expect this trend to continue and even increase over time. We are currently 
assessing a number of alternatives to facilitate accelerated growth in this 
developing business area. 
 
Enquiries to: 
 
Cadogan Petroleum Plc [phone] 
 
Bertrand des Pallieres 
 
Chief Executive Officer 
 
Cantor Fitzgerald Europe [phone] 
 
David Porter 
 
Richard Redmayne 
 
Bankside Consultants [phone] 
 
Simon Rothschild 
 
 
 
END