Cadogan Regulatory News (CAD)

29 May 2009 07:00



Cadogan Petroleum PLC

("the Company")

Potential procurement irregularities

Operational review ongoing

In the course of a review being undertaken by the Board, evidence has come to light of potential irregularities surrounding the procurement of and payment for certain assets and services contracted for by the Company. Potentially irregular payments identified to date are in the range US$5-7 million. The Board together with its legal advisers is conducting a full investigation of these matters and a further announcement of the outcome of that investigation will be made in due course.

Separately the operational review commissioned by the Board on 19th March is ongoing and relates to all aspects of the Company's reserves, assets and operations in Ukraine and potential future strategies for their development. It is expected that a further announcement of progress in this respect will be made in advance of the AGM.

29 May 2009

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