Ukraine Ministry Extends Cadogan's Zagoryanska License to 2014

Cadogan has provided an update regarding its Zagoryanska special permit ("License").

The Ministry of Environment of Ukraine has issued an extension to License #3108 for the Zagoryanska area to Cadogan. This Exploration & Development license has now been extended by 5 years to April 24, 2014.

The required work program includes, i) the acquisition of 3D seismic data across the field which will be completed in 1Q 2009, ii) the testing of well #3 which is currently in progress, iii) the workover of well #2 which is already included in the 2009 work program, and iv) the drilling of an appraisal well. The final conclusion of the work program is not required to be completed before the end of the license period in April 2014.

Mark Tolley, Chief Executive commented, "We are very pleased with the extension of this license which indicates the full support of the Ministry of Environment in our plans for the long term appraisal and development of this license area. At any time during the term of this license, as soon as the work program has been successfully completed, Cadogan will aim to convert this license to a long term Production License."