Cadogan Energy Solutions Plc Announces Annual Results for the Year Ending 2023

Cadogan Energy Solutions Plc Annual Results for the year ended 31 December 2023

London, 7 May 2024: Cadogan Energy Solutions Plc (LSE: CPN) today announces its annual results for the year ended 31 December 2023.

Key Financial Highlights:

• Profit for the year of £1.3 million (2022: loss of £1.6 million)
• Average realised price of £59.32/boe (2022: £73.4/boe)
• Gross revenues of £7.6 million (2022: £8.5 million)
• G&A costs of £3.6 million (2022: £3.4 million)
• Profit per share of 0.5 cents (2022: loss of 0.6 cents)
• Cash at year end of £14.2 million (2022: £13.9 million)

Key Operational Highlights:

• Production of 119,057 barrels (2022: 117,793 barrels), a 1% increase year-on-year
• No Lost Time Incidents (LTI/LTI)
• Re-validation of ISO 14001 and 45001 certifications
• Extension of Blazhiv-3 and Blazhiv-Monastyrets-3 wells' lease contracts for a 5-year period
• Qualification of Exploenergy as a gas operator in Italy
• Launch of the gas-to-power investment in Ukraine with the aim of being an electricity producer in 2025

Group Overview: In 2023, the Group continued to maintain exploration and production assets, and to operate an oil services business in Ukraine. Cadogan's assets are concentrated in the West of the country. The oil services business focuses on workover operations, civil works services and other services to satisfy Cadogan intra-group operational needs.

Business Model: We aim to increase value through:

• Maintaining a robust balance sheet, monetising the remaining value of our Ukrainian assets and supplementing E&P cash flow with revenues from gas trading and oil services
• Developing new activities along the energy value chain with a lower impact on environment
• Diversifying Cadogan's portfolio, both geographically and operationally

Ukraine 2023 remained a highly challenging year for Cadogan due to the ongoing invasion of Ukraine by Russia and its consequences on the operational activities of the Group.

West Ukraine The Group continued to produce oil from its production Blazhiv license located in the West of Ukraine. The Group avoided temporary shutdowns of its production during the Q1 2023 due to the severe constraints arisen in the country. Nevertheless, production grew by 1% above the production of 2022. Net oil production was 119,057 barrels corresponding to an average of 326 barrels per day.

Cadogan has signed with PJSC Ukrnafta the extension of the wells Blazhiv-3 and Blazhiv-Monastyrets-3 lease contracts for a 5-year period (previous contracts were for a 3-year period) ahead the expiry period which allowed to avoid production stoppage and secure cash flows.

In 2023, the Company continued focusing on the subsoil study of Blazhiv field. Cadogan conducted and completed full hydrodynamic surveys of Blazhiv-1, Blazhiv-3, Blazhiv-Monastyrets-3, and Blazhiv-10 wells. The hydrodynamic model as well as the production forecast was updated. In the second half of 2023, the Company launched a new assessment of hydrocarbon reserves, by an independent expert, according to PRMS standards. The assessment was completed at the end of February 2024.

Cadogan is expanding into the electricity generation business by using the gas emissions related to oil production. This will allow significantly reducing atmospheric emissions and ensuring additional cash flow. The Company launched the project to capture non-commercial associated gas during oil production at the Blazhiv field, which will then be used to generate electricity for sale on the grid. This project