2011-04-29-2011-04-13

To acquire 30% WI in Pokrovskoe license with option for another 30% WI later & 60% WI in Zagoryanska license, both in Ukraine.

Eni SpA, Rome, (NYSE: E) plans to acquire interest in the Pokrovskoe and Zagoryanska licenses in eastern Ukraine from Cadogan Petroleum Plc, London, (London: CAD) for up to US$158 million in various payments.

Eni will pay US$38 million in cash and fund 100% of a work program including drilling and seismic reprocessing, for approximately US$30 million in exchange for 30% interest in the Pokrovskoe license, with the option to acquire a further 30% interest in the future, and 60% interest in the Zagoryanska license. Following successful results from the programs and award of production licenses, Eni will pay Cadogan further amounts of up to US$90 million.

The US$30-million work program on Pokrovska will be used to fulfill the work obligations on the license and will test the potential of the Upper and Lower Visean intervals which had strong indications of hydrocarbons. The cash proceeds arising from the transaction will be applied to finance any future Zagoryanska work programs.

Cadogan chairman Simon Duffy says, "The announcement of this major transaction signifies a turning point for Cadogan. With Eni as a strategic partner, the company can more rapidly develop the potential in these licenses and can embark on other significant oil and gas opportunities that are present in Ukraine."

The deal is expected to close by June 30.