Cadogan Petroleum Plc - Operations Update

Press Release                                                                                                                       30 January 2023

This announcement contains inside information as defined under the Market Abuse Regulations n. 596/2014

Cadogan Energy Solutions Plc

(“Cadogan” or the “Company”)

Cadogan Energy Solutions plc (“Cadogan”), the London Stock Exchange listed independent energy company is pleased to provide the following operational update post year end.

2022 has been a high challenging year for Cadogan due to the invasion of Ukraine by Russia and its direct and subsequent consequences on the Ukrainian economy and infrastructure. The operational activities of the Company in Ukraine have been directly impacted.

In the first half of 2022, the production was suspended for 3 weeks in March 2022 and was resumed after securing the employees, the assets, the financial transactions and the sales process.

In the second half of 2022, there have been several production stoppages due to the reduction of crude oil consumption by oil refineries caused mainly by the Russian strikes or by power outage due to similar strikes of the electricity infrastructure.

As a consequence, the net oil production for 2022 was 117,793 bbl and averaged 323 bpd which is 8% below the production of 2021. The Company is currently analyzing several solutions to overcome these constraints for its crude oil production in 2023.

In 2022, the Company completed studies and data reprocessing and reinterpretation of old 2D seismic of Blazhiv field launched at the end of 2021, and received the required data for field skeleton structural and tectonic modeling.

All activities were executed without LTI or TRI, with a total of over 1,570,000 manhours since the last incident. Besides, the Company has successfully passed ISO audit whereas ISO 14001 and 45001 certification were re-validated by respective authority for the new term.

In 2022, the Kyiv Administrative Court and further on the Supreme Court have not taken into consideration the Company’s arguments regarding the Bitlyanska license award approval and rejected the claims.

The litigation case with the Ukrainian Tax Administration has been ended in favor of the position defended by Cadogan.

ENDS

About

Cadogan is an independent, energy company, which operates an exploration and production license in Western Ukraine, conducts gas trading operations, and provides services to E&P companies. The aim of the Company is to be a diversified energy group making investments offering energy solutions and alternative services with a lower environmental impact.

For further information, please contact:

Cadogan Energy Solutions plc
Fady Khallouf                 Chief Executive Officer                 [e-mail]
Ben Harber                       Company Secretary                       [phone]

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