Completion of Share Purchase Agreement

Cadogan completes Share Purchase Agreement with Nadra Ukrayny and Eni for the exploration and development of unconventional gas in Ukraine Further to its announcement of 18 June 2012, Cadogan confirms that, together with its joint venture partner Ukrainian state-owned National Joint Stock Company Nak Nadra Ukrayny ("Nadra"), it has completed its Share Purchase Agreement with Eni S.p.A ("Eni"), the Italian integrated energy company, whereby Eni has acquired a stake in the joint venture established by Nadra and Cadogan, Ukrainian company LLC Westgasinvest. LLC Westgasinvest currently holds subsoil rights to nine unconventional (shale) gas license areas in the Lviv Basin of Ukraine, totalling approximately 3,800 square kilometres of acreage. The Lviv Basin is considered to be one of the most attractive basins in Europe for the exploration of unconventional gas, being a continuation of the Lublin Basin in Poland which has already attracted substantial interest from the hydrocarbon industry. This Agreement was developed within the framework of the Cooperation Agreement with Eni, signed in 2011. Under the transaction, Eni acquires 50.01% of LLC Westgasinvest from the joint venture parties and will fund an initial exploration program. Cadogan will retain ownership of 15% of LLC Westgasinvest