Cadogan Petroleum plc: Annual Financial Report

The Directors present the Annual Financial Report for the year ended 31 December 2012. The full Annual Report and Accounts will shortly be available via the Company’s website at www.cadoganpetroleum.com

KEY POINTS

Cadogan Petroleum plc is an independent oil and gas exploration,development

and production company with onshore gas, condensate and oil assets in Ukraine.

Key developments during 2012:

– The completion of a major transaction between Eni S.p.A(“Eni”), NAK Nadra and Cadogan Petroleum plc (“Cadogan” or “the Company”)resulting in establishment of LLC Westgasinvest (“WGI”), which holds a portfolio of 10 licences for unconventional gas covering a total area of 3,795square kilometres, and subsequent farm-out to Eni of 50.01%. Cadogan retains 15% interest in WGI

– Sale of two gas plants for $29.5 million and settlement of all associated litigation with Global Process Systems (“GPS”) completed in April 2013

– Total impairment of $86.3 million mainly related to the Zagoryanska license

– Total capital expenditure of $22.3 million (2011: $21.3 million) during the year of which $4.1 million was funded by the deferred consideration from the

disposal of 30% of Cadogan’s interest in the Pokrovskoe licence to Eni in 2011

– Net cash and cash equivalents at year-end of $42.4 million (2011: $65.0 million). Cash and cash equivalents at 24 April of $67.2 million

Source