December 2015 These presentation materials do not constitute or form - PowerPoint PPT Presentation

December 2015

These presentation materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. No responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with, these presentation materials or their contents or otherwise arising in connection therewith. These presentation materials may contain forward-looking statements relating to the future prospects, developments and strategies of Cadogan Petroleum plc (the "Company"), which are based on directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Each forward-looking statement speaks only as of the date of the particular statement and, except as required by law or regulations to which the Company is subject, the Company disclaims any obligation to update any such forward-looking statement to reflect future events or developments. IMPORTANT NOTICE 2

 UK incorporated and listed on the London Stock Exchange (market cap. £18.78 million (1) )  Established E&P Company in Ukraine; 9 on-shore licences (2) , with a combined area of approximately 1052 km 2 in the Dnieper Donets and Carpathian basins. ‒ Current average production of 122 boepd ‒ 3P Reserves of 19.2 Mboe (3) and 2C contingent resources of 10.1 Mboe (3) ‒ Partnered with ENI in the first shale gas initiative awarded in Ukraine HIGHLIGHTS (1) As of 21 December 2015. (2) For two licences, Pirkovska and Zagoryanska, the process to secure re-award past expiry is in progress (3) Reserves and resources include volumes in Pirkovska and Zagoryanska licenses 3

 Among largest private investors in Ukrainian E&P sector with > US$500+ million invested over the last 10 years  Growing gas trading activity which generated net profits in excess of US$ 1.5 million both in H2 2014 and in H1 2015  Strong balance sheet with net cash of US$ 48 million at 30 June 2015 HIGHLIGHTS 4

Kyiv Corporate Headquarters  Ukraine E&P Head Office  Gas trading  Business Services E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS 5

Western Ukraine  Bityanska license; License renewed until December 2019 • Shallow and deep (Oligocene) exploration targets  Monastyretska license; License renewed until November 2019 • 45 bopd of oil production • Low risk exploration and appraisal potential  Slobodo-Rungurska license • Oil exploration potential  Debeslavetska and Cheremkhivska E&P Cadogan licenses licenses Shale gas licenses • Marginal gas production (510kscfd) in JV with Eni ASSETS 6

Eastern Ukraine  Pirkovska license • Testing of old wells at Tournesian level on-going • Prospects and leads identified in the Permian  Zagoryanska license; Expired . • Re-application for 20-year period  Pokrovska license • Prospects and leads identified in the Permian Carboniferous E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS 7

Reserves & Resources (MMboe) (gross) Current gross Best estimate Working 3P reserves (1) 2C contingent Licence Type Area (km 2 ) production prospective Expiry date interest resources (boepd) resources (2) Pokrovska Conventional oil 70.0 50 - 2.6 - 73.6 Aug. 2016 Eastern Ukraine Pirkovska Conventional oil 100.0 72 - 11.3 6.6 67.9 Expired, renewal Zagoryanska Conventional oil 100.0 50 - 1.6 2.2 - submitted Monastyretska Conventional oil 99.8 26 48 2.7 - 3.0 Nov. 2019 Debeslavetska Shale gas 99.2 27 66 0.8 - - Nov. 2016 Western Ukraine (prod.) Debeslavetska Shale gas 99.2 218 - - - 1.0 Sep. 2016 (exp.) Cheremkhivska Conventional oil 54.4 119 8 0.2 - May 2018 Bitlyanska Conventional oil 99.8 390 - - 1.2 66.6 Dec. 2019 Slobodo Conventional oil 100.0 101 - - - 8.0 Apr. 2016 Rungurska Total 1,052 122 19.2 10.1 220.0 E&P BUSINESS 8

Licence Activity  Re-entry of two existing wells Eastern Ukraine Pokrovska  Farm-out for full carry on exploration drilling  Secure renewal of licence  Re-entry of one existing well Pirkovska  Farm-out of for full carry on the exploration drilling  Secure renewal of licence  Re-entry of three existing wells Zagoryanska  Re-interpretation of the 3D seismic volume  Re – entry of two shut-in wells upon finalising rental agreement with the owner Monastyretska  Farm-out in exchange for full carry on 100km of 2D seismic and one exploration well to drill the identified prospect at Jamna Western Ukraine  Work-over campaign on six wells to increase production to 530Mcf/day. Debeslavetska  Farm-out in exchange for full carry on 100 Km of 2D seismic, one exploration well and a further contingent well  Finalise studies and assess the volume of thermogenic gas resources. Cheremkhivska  Re-entry and fracking of existing well at no cost to Cadogan under a profit sharing agreement Bitlyanska  Farm-out in exchange for full carry on 100 Km of 2D seismic and one well to drill the Jamna Slobodo Rungurska prospects. E&P BUSINESS 9

 Cadogan’s services business – “ Astro- Service” provides specialised services to oil & gas operators in Ukraine including: ‒ Well permitting and land allotment; ‒ Well site and road design and construction; ‒ Drilling, work-over and servicing; ‒ Waste management and cuttings/fluid disposal; and ‒ Warehouse and logistics support. OIL SERVICES BUSINESS 10

 Wide range of subcontractor agreements in place and partnership networks with local contractors.  Partnering or agent agreement with international service providers such as Medes Srl, AVA/Newpark, Hydrodrilling, Tecom and Mitch.  Portfolio of contracts worth > US$5 million for 2016.  EBITDA in excess of US$350,000 in both 2013 and 2014. OIL SERVICES BUSINESS 11

E&P and Service PARTNERS 12

 Established a viable, growing gas trading business over the Operational and financial last 12 months. performance  Over 250 million m3 of gas sold in the first year of trading. H2 2014 H1 2015  Trading segment a major contributor towards Company’s 75.7 129.4 Gas sales cash neutrality having generated net profits in excess of $1.5 (MMm 3 ) million both in 2014 and in H1 2015. Revenues 29.4 39.6  First private trader-importer into Ukraine from Slovakia; (USD currently importer on all three Europe-Ukraine borders mio) (Slovakia, Poland, and Hungary). Net profit 1.8 1.6 (USD  Recognized trader and reliable supplier in the Ukrainian mio) market. 6 10 Number  Business relationships with European and Ukrainian traders as of clients well as major Ukrainian gas producers. GAS TRADING BUSINESS 13

Key Gas Trading Clients PARTNERS 1 4

Our goal  Return value to shareholders by realizing the upside of undervalued assets, primarily at mature exploration stage. Our strategy  Leverage management experience to source additional E&P assets to diversify Cadogan’s portfolio both geographically and operationally. Add production: Source additional producing assets to cover G&A and provide free cash flow for ‒ exploration activities. Complement with exploration: acquire high impact exploration and near term developments with upside. ‒ Targeted acquisition criteria: ‒ 1. Focus onshore and on operated position; and 2. Geographical focus: Middle East, Africa, Eastern Europe and Ukraine, Central Asia. Minimise Ukraine expenditure: Farm-out for carry on legacy Ukrainian licenses. ‒  Maintain sufficient capital base – complemented by cash flows from gas trading and oil services businesses. STRATEGY 1 5

Corporate Snapshot Top Shareholders Ticker CAD -LN Shareholder No. (M) % Outstanding LSE Standard Main Market Listing type SPQR Capital Holdings SA 67,298,448 29.12% UK Domicile P Salik Esq. 40,550,000 17.55% Shares in issue 231,091,734 M Meeus Esq. 25,640,652 11.10% 8.12GBp* Share Price (52w high/low) Jean Benaim 21,660,582 9.37% Market Capitalisation (1) £18.78 m Damille Investments 12,592,866 5.45% Net Cash (2) $48m Monte Leone Special Situations 11,370,000 4.92% Total 77.51% Cadogan share price vs. listed Ukrainian peers 140 140 CAD-GB RPT-GB JKX-GB MISE-SE SHEL-B-SE KUB-CA Rebased to 100 as at 8 October 2013 120 120 100 100 80 80 60 60 40 40 20 20 0 0 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 (1) As at December 2015 (2) As at June 2015 CORPORATE OVERVIEW 1 6

 Listed on the London Stock Exchange, Main market  Trading symbol CAD  231,091,734 ordinary shares issued at £0.03 each  Share price of 8.12 GBp  Market cap of £18.78M  The listed Ukrainian E&P company that has shown stability and outperformed peers during a period of political unrest and global oil and gas downturn CORPORATE OVERVIEW 1 7

Zev Furst - Chairman Guido Michelotti - Chief Executive Officer Gilbert Lehmann - Senior Independent NED Adelmo Schenato - Chief Operating Officer Bertrand des Pallieres - Chief Trading Officer Chicco Testa - Independent NED . . Michel Meeus - Non-Executive Director BOARD OF DIRECTORS 19 (click photos to read more) 1 8