Cadogan Petroleum plc, an independent oil and gas exploration, development and production company with onshore gas and condensate assets in Ukraine, declares the offering of its ordinary shares in its initial public offering.

• The offer price is set at 230 pence per ordinary share (the “Offer Price”).

• Conditional dealings are expected to commence on the London Stock Exchange at 8.00am (UK time) today (18 June 2008).

• Based upon the Offer Price, the market capitalisation of Cadogan at the commencement of conditional dealings will be approximately £531.5 million.
• The Global Offer consists of 66,443,479 new Cadogan ordinary shares. The Group intends to use the net proceeds of the Global Offer of approximately £139.0 million to pursue its field appraisal, exploration and development drilling programme for its major fields and to otherwise finance the Group until it can fund its future cash requirements from internally generated cash flow.
• As stabilising manager, UBS Limited (“UBS”) has been granted an over-allotment option of up to 9,966,514 million existing ordinary shares by certain existing shareholders, representing approximately 15 per cent. of the ordinary shares issued in the Global Offer exercisable for a period of 30 days from today.
• Admission is expected to become effective and unconditional dealings to commence at 8.00 am (UK time) on 23 June 2008.

UBS is acting as sole global coordinator, bookrunner and sponsor to Cadogan in relation to the Global Offer, with Fox-Davies Capital Limited acting as co-lead manager.

Simon Duffy, Chairman, commented, “The IPO represents an important milestone in the development of Cadogan. We are delighted with the outcome and look forward to progressing the next phase in the Group’s development.”

Mark Tolley, Chief Executive, commented,“The successful IPO is a tribute to the hard work of Cadogan’s staff and demonstrates investors’ belief in both our high quality asset base and the attractiveness of the Ukrainian energy sector. I am delighted to welcome our new investors at an exciting stage in the development of Cadogan and look forward to creating value for all our stakeholders by delivering on our objectives.”

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