I have considered investing in an unknown oil minnow that is operational in the Ukraine and potentially of the same calibre as JKX Oil and Gas.

Does anyone know about this company or have any thoughts?

Gerry

austing2253,

Apart from the fact that both companies operate in the Ukraine, what are the other similarities between Cardinal and JKX please?

fao austing 2253

directors recently bought alrge quantity of hsares at around the 20-21p mark
sp jumped up to around 30p but has slipped back this week
I dont know why

I like the company
mind you I like the area

have you been to web site
have you checked other BBs....iii.co.uk
advfn etc

many views once you get past the opinionated rampers who seem to spend all day exchanging comments with each other

Yes, I've been all over, I have quite a few JKX shares and wondered if CDL could go north likewise.

well i am certainly hoping for a JKX repeat

i was/am in at 14p (average) (2000)


CDl from 18.5p

I guess it may take a few years but worth the wait IMO

austing2253, anotherxiii,

But apart from being geographically located in the Ukraine, I was wondering what other similarities there are between JKX and CDL?

JKX have exploration in USA, Italy, Bulgaria, Turkey, and offshore Georgia, in addition to production in Ukraine, do CDL have any other assets, or are they only based in the Ukraine?

hi andy

try looking..........< >>

JKX have the assets you refer to
but they didnt used to !
assets take time to aquire/build up and more importantly develop and come 'on stream'

so yes JKX is looking good but 6 years ago it would not have appeared much different to cardinal

IMO
its always best to do your own research rather than take notice of people (like me) who you7 dont know from Adam!
JKX worked well for me and has more than paid for a good few others that have not!

dont know what happened there

it meant to read

try looking ............http://cardinal-uk.com/

good luck

anotherxiii,

As you already seem to know about CDl I was hoping for a brief synopsis without checking all through the website, as I am pushed for time today.

If you take the link you copied, and click the chain icon above the box, paste the link into the box, and a second box will apear, where you can input text, such as HERE.

So you can find the CDL website by clicking HERE

you've lost me!

I found him his above me

Thanks Guys

You've been really helpful. I'm in now with this one and hoping for a repeat of JKX.

Lots of positive indicators from doing research into this company but.....does anyone know when the negotiations to increase their stake in the RC Field to 45% is due to complete and why RAB Capital sold their shares?

This company looks a long term buy particularly as they are producing and plan to enhance their asset base and improve production in the context of Ukraine's Gas Price issues with GAZPROM.

RAB are allways buying and selling they holdings, and they tend to sell their best shares, such as selling a 15% holding in GFM, its to do with the cash flow among they funds .

aldwickk, many thanks, what are your views on HEP?

.http://www.nauticalpetroleum.com/

Thanks aldwickk, understand the connection (St L Permit) will look into.

Silvermede, I havn't got a view on these at the moment.

Aldwickk, understand and as always I will DMOR

I found this tip when I was clearing out my mailbox, it's from about a month ago.
-------------------------------

The recent news from Ukraine seemed unfavourable as far as oil and gas companies are concerned, dealing as it did with the so-called gas price war with Russia.

But the share price of the London AIM-listed Cardinal Resources has seen a strong rise in recent days and there could be more to come. This could have something to do with a couple of broker's reports which suggest in terms of European gas supply Ukraine could find itself well placed over time. More likely it is the latest operational and financing update from Cardinal itself that has provided the lift.

Cardinal has interests in the Rudivsko-Chernovozavodske (RC) and Bytkiv-Babchenske (Bytkiv) fields, which it operates in partnership with NYSE-listed JSC Ukrnafta, the largest oil producer in Ukraine. In addition, in October last year Cardinal acquired the Rudis Drilling Company. This meant three new licence areas and a Joint Activity Agreement (JAA) with Ukrgazvydobuvannya (Ukrgaz), a subsidiary of Naftogaz Ukraine, came into the Cardinal fold.

All this has meant Cardinal now has 20 wells in production, with two makeovers in the last six months and a further four workovers expected to be completed during the first quarter of 2006. The company's net reserves are now put at 27.5 million barrels of oil equivalent - 50 per cent higher than four months ago - and production has doubled to a daily average of 1,172 boepd. Most of the output came from the Bytkiv field which is an oilfield located in the Carpathian fold belt, 45 km southwest of Ivano Frankivsk in the Nadvirna Oblast. Twelve wells are producing in the field.



Robert Bensh, Chairman and Chief Executive Officer of Cardinal, says a priority for 2006 is to restore its position in the RC field. The RC field is a large underdeveloped gas field (1.54 trillion cubic feet of gas in place) located in the Dnieper-Donets basin, 200 km east of Kiev in the Poltava Oblast.

Cardinal formerly traded as Carpatsky Petroleum on Toronto's Venture Exchange before being delisted in June 2003 for failing to file financial statements and pay the Exchange's annual fees. This in turn meant its stake in the RC field was cut back to 14 per cent when it was unable to fund its share of the work programme.

Following a financing by Silverpoint Finance in December 2005 when US$38 million was raised, Cardinal is negotiating to reinstate its net profit interest in the RC field from 14.9 per cent to 45 per cent. This will provide a considerable boost to reserves and production and significantly increase Cardinal's footprint in Ukraine.

As for the prices received for gas Bensh says: "I maintain my view, based on the trends we have experienced so far, that domestic gas prices will continue to increase with positive implications for Cardinal. Since the IPO [on London's AIM] in April 2005 we have already experienced a rise in the average sales price of our gas.

He continues: "In light of the recent disruption in gas supplies from Russia and the increase in imported gas prices there is an even more pressing need for Ukraine to attract Western technology and increase foreign direct investment in the energy sector to increase domestic production."

At 28p, Cardinal Resources is a buy.

Key Data

EPIC: CDL
Price: 27.5 - 28.5p
Market : AIM

By - Stewart Dalby

well found Andy
its always good tos ee a positive press article

good news out! any holders?

I'm still in and expecting some very significant rowth over next couple of years
I have no specific reasons other than the whole thing looks so similar to JKX but with luck will avoid the stumbles made back in the late 90's by them

the whole Ukraine thing is in my view an extremely good investment as they really do seem determined to move towards the West
if they fail then its 'all bets off'

but I dont think they will

All,

Cardinal resources are presenting at Oilbarrel soon, so there may be an uplift afterwards if peeps like what they hear.



anotherxiii

Sorry, I don't agree, I see the Ukraine as a good place to do business regardless of the government, or their political stance towards Moscow.

JKX were doing business there under the old pro Moscow regime, and continued under the new pro west regime.

IMO Ukraine need the energy, and export revenues, as well as taxes of course, and will therefore encourage companies to invest there in order to produce the energy they require.

It could be argued that the pro west stance has led to the recent price increases, and so have benefited domestic gas producers such as Cardinal and JKX.

Amities / ...Bonne matins / Slt ..... A small point; but may give a clue as to the relative futures of both JKX and CDL. Directors and institutional supporters in JKX have been busily selling whilst thier counterparts in CDL are buying . l think you have to measure each company on thier individual merits as opposed to the general geopolitical background that constitutes the Ukraine .Furthermore. although, in reality West and East Ukraine are like different countrys in all but name with the former looking to Moscow and the latter to the Europeon union l agree strongly with Andy that whether Yushchenko or Yanukovych wins the forecoming elections it will be strictly business as usual . And for the very same reasons he mentions . Also Shell have farmed into a 10 NAK licenses { CDLS strategic partner } in the Dniepr Donets with a worth of $100 million. Malcom Brinded, Shells executive director for exploration and production clarified " This is a significant move as part of our stratagy to add more integrated gas to our porfolio . .All in all i would venture to say all looks well in the garden of CDL ...,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, . One variable for sure is that CDL revenues/ receipts for gas have risen 34% in the last half of year. l can only assume the story will be much the same at JKX. . But whereas l currently feel every drip of good news is factored into the JKX s/p , CDL is only juste hitting attracting the interests /radars of the bigger players . ..{ juste for the record i own a substantial amount of both JKX and CDL .} Bonne chance / a'bientot ...@+ J ..

TFC,

I am going to attend oilbarrel, so will post my thoughts after the presentation.

There is another Ukranian oil and gas play presenting, due to list on AIM soon too.

Three days to go before the Ukranian Elections. Any ideas what difference this makes to the CDL negotiations to buy back into their JV partners to regain their 45% interest? I'm hoping for good news and awaiting for the shares to climb nearer to their true potential.

Can anyone shed any light on what's happening in the Ukraine? JKX price has jumped recently - was that on good news about the election?

JKX, bid rumour also oil price.

austing2253,

According to the weekend press, JKX' jump on Friday was due to "vague takeover rumours", so I would exect the price may retrace somewhat, unless it's true (which I doubt) of course.

Some of the rise would be down to the renewed bullishness in the oil and gas sector, and the higher prices they are receiving for their oil and gas, so I expect all producers such as JKX to move up anyway.

The latest news may not be so good, as the lady that wants to re-nationalise everything seems to be returning to power!

The news article is HERE

Thanks for that Andy. And what would happen to JKX & CDL shares if she were to renationalise them? Would I be paid for them or loose the lot?

Andy, you were going to post your thoughts after the Oil Barrel conference. Earlier thread on 12th March. Do you think it wise to cut my losses and sell these shares while I'm ahead?

austing2253,

JKX were operating in the Ukraine under the old socialist regime, so I am not selling mine as I think the western governemnts would not allow her simply to take out our companies without compensation.

She also wants to tear up the gas agreement with Russia, agreed in January by the guy that has just employed her! Again, unlikely to happen IMO.

With regard to theOilbarrel conference, I thought the Cardinal presentation was very positive, and once they have repurchased the share of the field they lost a couple of years ago, I will probably invest, subject to having some funds.

The CEO made the obvious comparison with JKX, and on a strict fundemental comparison basis, Cardinal look cheap.

What he didn't take into account was the potential of JKX, with it's various projects, such as the Georgian offshore block.

Cardinal looks a solid enough company to me, and IMO should do well in the future, given that oil and gas prices look set to remain high, and are more likely to rise than fall in the near future if Iran turns nasty.

Austing2253,

I have to confess I cannot find my notes, I may have left them in London.

Here is the write up from the conference.



CFO Charles Green updates Cardinal's activities in Ukraine

Green believes that as these reforms bed down and gas prices converge with those in Europe Ukraine will become as increasingly attractive investment proposition for E&P companies. Cardinal plans to be part of that proposition and intends to build a reserve base of 100-200 million boe within the next three to five years.

We think we have a consolidation period of about 18 months to two years before theres more attention paid to this marketplace, said Green. We plan to create a footprint investment in the region and present it as a sale or merger opportunity for a larger E&P.

Thanks for that Andy, very informative as always. I think I will hang in with CDL & JKX. Best wishes with yours. Gerry

Gerry,

You were too quick!

CLICK HERE to link to their Oilbarrel presentation.l

Has anyone any news at all about CDL? All seems to have gone very quiet?

austing2253:

Here is an article on CDL,just out.The site is free to register and is very useful.

http://www.proactiveinvestors.com/registered/articles/article.asp?CDL

Cardinal Resources plc: If you can look past the surface, Cardinal is an interesting E&P play on Ukraine
Production and commercial achievements have been overshadowed during the year by the Company's physical and legal defence of its assets. ... long-term is our commitment to Ukraine and our determination to operate in accordance with both Ukrainian and international law."

austing2253,

if you read the article, the reason for the share price being in the doldrums will become very apparent!

I cannot see any major move above 27p in the near future on current news.

Thanks h.hairettin & Andy

A very interesting article and http://www.proactiveinvestors.com/ will be kept as a useful reference for the future.

I am in for the long term with CDL and am expecting there to be a bumpy ride ahead. I missed out on JKX in the early days buying in at 1.16, so a nice profit to date.

Once again thank you for the info.

austing2253,

I don't expect too many bumps, but not much of an increase either, to be honest.

Good drilling news may change that of course, but until then, we can only go on the information in the public domain.

CDL factsheet available here:

http://www.cardinal-uk.com/Cardinal_Factsheet_21_06_06.pdf

DIRECTOR HOLDINGS IN COMPANY

LONDON Wednesday, 26th July 2006

Cardinal Resources plc (AIM:CDL) (Cardinal or the Company), an independent oil and gas production and exploration company operating in Ukraine, was today notified that Marcus Stanton, Non-Executive Director of Cardinal, today purchased 50,000 Cardinal Ordinary Shares at a price of 18.5p.

Mr. Stantons total holding in the Company now equals 175,000 Cardinal Ordinary Shares, or 0.15% of the issued share capital.
###
For further information please contact:
Cardinal Resources Parkgreen Communications
Kate Spiro Justine Howarth / Victoria Thomas

+44 (0) 20 7936 5258 +44 (0) 20 7493 3713

kspiro@cardinal-uk.com victoria.thomas@parkgreenmedia.com

CARDINAL RESOURCES PLC ANNOUNCES AMENDMENT TO SILVER POINT CAPITAL INTEREST PAYMENTS

LONDON Wednesday, 26th July 2006

Cardinal Resources plc (AIM:CDL) (Cardinal or the Company), an independent oil and gas production and exploration company operating in Ukraine, today announces an amendment to its interest rate payments with Silver Point Capital (SPC).

In December 2005, the Company announced a $38 million two-year bridge facility with SPC with a coupon rate of 15% per annum in the first six months, rising to 20% per annum and then another 1% per annum for every quarter thereafter until maturity, payable quarterly in cash or with payment-in-kind notes. Subject to any necessary shareholder and regulatory approvals required, it is still intended that the $38 million facility will be replaced with a five-year senior PIK note facility. Pending receipt of such approvals and until further notice, SPC has confirmed that it will vary the terms of the earlier agreement and continue to charge a lower interest rate of 15% per annum.
###
For further information please contact:

Cardinal Resources Parkgreen Communications

Kate Spiro Justine Howarth / Victoria Thomas

+44 (0) 20 7936 5258 +44 (0) 20 7493 3713

kspiro@cardinal-uk.com victoria.thomas@parkgreenmedia.com

austing2253,

There you are, I told you it was a lousy deal!

Sadly, it looks as though Silverpoint will still have the option to raise their options of virtually 100% of the company at 27p, and I see that as a major negative.

This is a small step in the right direction IMO, but the options issue is the major obstacle IMO.

Thank you Andy - your advice is very welcome.

Good assessment, Andy. Frankly the company would have been better off charging their borrowings to a credit card. The lender clearly thinks the co has a lousy risk profile, otherwise there's no way they'd be charging so much.

AGM statement - REsolutuion # 8, to increase borrowing REJECTED by shareholders!

What on earth are they trying to do borrowing more money?
=============================================================

Cardinal Resources plc
27 July 2006


CARDINAL RESOURCES PLC ANNOUNCES RESULT OF AGM

LONDON - Thursday, 27th July 2006

Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent
oil and gas production and exploration company operating in Ukraine, announces
that at its Annual General Meeting held today, resolutions 1-7 proposed to
shareholders were passed on a show of hands. Resolution 8, with respect to
increasing the Company's borrowing powers, was rejected on a poll, with 69.45%
of shares being voted in favour and 30.55% against.

###

For further information please contact:

Cardinal Resources Parkgreen Communications
Kate Spiro Justine Howarth / Victoria Thomas
+44 (0) 20 7936 5258 +44 (0) 20 7493 3713

kspiro@cardinal-uk.com



victoria.thomas@parkgreenmedia.com


Notes to Editor

Cardinal Resources plc

Cardinal Resources plc is an independent oil and gas company engaged in the
acquisition, development, production and exploration of oil and natural gas
properties in Ukraine. Cardinal is an experienced operator in the country
focused on expanding its existing operations through the farm-in or acquisition
of additional upstream oil and gas assets that can be further developed through
the application of modern technology and expertise.


This information is provided by RNS

Positive drilling update and no sp movement, nor any buys.

Weird.

CDL is featured in this article from proactiveinvestors.com.

Click HERE


It's an upbeat report, and if registration is required to view it, it's free and painless!

Good news today.


http://www.investegate.co.uk/Article.aspx?id=200610261307530996L

Interesting little point picked up from the RNS today :

"The BC No. 3A Well was drilled using a Ukrainian "hybridized" drilling rig,
developed by Cardinal, which reduced the drilling time from a forecasted eight
months to 76 days."

Oh dear!




Cardinal Resources plc

RNS Number:5151L
QVT Financial LLP
03 November 2006


Cardinal Resources plc

Miscellaneous



Europa Partners Limited


3 November 2006


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM AUSTRALIA, CANADA,
JAPAN OR THE UNITED STATES


QVT Financial LLP
appointment of
Europa Partners Limited
in relation to shareholding

QVT Financial LLP ("QVT"), the London based investment advisor, has appointed
investment bank Europa Partners Limited ("Europa Partners") in relation to QVT's
interests in Cardinal Resources plc ("Cardinal Resources").


QVT has instructed Europa Partners to pursue the implementation of possible
strategies for improving the value for its shareholding in Cardinal Resources
which it does not believe is reflected in the current share price. This may
include an outright sale of QVT's shareholding. QVT Fund LP, a fund advised by
QVT, currently owns 18,545,000 Ordinary Shares of Cardinal Resources,
representing 16.18 % of the outstanding equity.


Commenting on this development, a spokesman for QVT said, "Cardinal Resources
floated on AIM in April 2005 at a price of 32p. At last night's close, the
shares stood at 11p. The latest calculations of net asset value per share are
45p, a reflection of the rise in energy prices over the last two years. Yet
Cardinal Resources' share-price has languished. We believe this to be due
primarily to inappropriate financing structures and bloated central costs."


The spokesman added, "We have tried to engage management in a constructive
dialogue and in particular to obtain full information on the recent financing
structure put in place with Silver Point Finance, but have not succeeded. We
have therefore appointed investment bankers to examine other alternatives."


QVT has advised Europa Partners that it intends to continue to be able to trade
in the securities of Cardinal Resources and not to become a party to information
the possession of which would mean it would be unable to trade freely.

oh dear what?

Thats good news!!

tHINGS ARE LOOKING UP??? aNYONE GOT ANY NEWS?

have a look on iii co.uk
a couple of extra postings
a longer thread and access to 'news' showing stakeholding(s)

Thanks for that, I am a signed up member but rarely visit iii.co.uk.

iii are like the grand old duke of york!!
(if you old enough to know!
its probably not PC nowadays!)

when they are OK they are OK

when they are not then they are very much not!

hence my posting name here!

Good to see a slow rise in SP...

Could be an interesting quarter this one for CDL. We might, only might, see a sharp rise.

DYOR !

Nice update from CDL today.

http://www.investegate.co.uk/Article.aspx?id=200705080701151795W


*********************************************

And the comment of Zengas is a good summary of that update imo :

ZENGAS - 8 May'07 - 07:42 - 1545 of 1547


Very positive update this morning.

Wells 3a, 13, 111 & 110 to be tied in to GGF by end of this Quarter (on schedule).

Conservative figure of 1,400 boe expected from those 4 wells.

NOTE WORTHY - "oil & gas production volumes were above budget for quarter 1."

Although 80% of current production is stored until pricing structure confirmed in writing (rather than verbally from the Govt) the figures are very interesting.

It states that due to the production (80%) currently stored, this is equal to a reduction of $450k in sales which equals $360k EBITDA.

Therefore (100%) 1,000 boepd production = $450,000 ebitda.

At the end of this quarter ebitda (on the expected 2200 boepd) should equal over $1m/month or 500k or 6m per year.

If the workovers of well 17 & 9 are completed by year end to add a further 800 boepd.
Ebitda going forward in 6 months time should equal over $16m/8m per year.

Excellent growth point with a further 7-8000 boepd of possible additional production in 2008. Future projections should range from 8m to a possible 29m in ebitda and the RC re-instatement is still on the cards.

Present mkt cap = 20m (undiluted).

Now this is music to my ears... I couldn't believe that all my research was suspect. A long way to go to recoup their highs of .30p, but with good figures like this it may be much quicker than I thought.

From AFN :

bb44 - 10 May'07 - 09:17 - 1569 of 1569

Cardinal Resources confirms 2007 production profile;

In its May 8 press release, Cardinal Resources provided a brief update of its production profile for 2007. The company confirmed that its gas gathering and separating facility will be launched on time, or by the end of 2Q07 as was originally planned, with 80% of the project completed to date.
Cardinal Resources has completed a 25 km2 3-D seismic survey at the Dubrivska license area. The company also plans to conduct a 65 km2 3-D survey at its Bilousivsko-Chornukhinska area and a 35 km2 3-D survey at the
North Yablunivska area in 2007, in line with initial plans. Cardinal Resources reiterated that its exit rate for 2007 production is approximately 3,000 boepd, which corresponds with our expectations.
Cardinal Resources also noted that it still prefers storing produced gas rather than selling it for household needs at limited prices. Essentially, the company is waiting for the Ukrainian government to clarify in writing whether production by JAAs involving a foreign partner (such as Cardinal) is subject to sales price restrictions.

We view this news on delays in gas sales as NEUTRAL for Cardinal Resources investment case. As we understand it, management is ready to resume sales at any time and at capped prices as mandated by current regulation. This is basically the scenario on which we base our valuation.
Moreover, Cardinal noted that Silver Point Capital has granted a waiver of covenants, in order to adjust for decreases in cash flows due to delays in sales.

CDL.LN BUY

Closing Price: $0.35
Target Price: $0.72
Upside: 106%

We reiterate our BUY rating for Cardinal Resources, with a 12M target price of 0.37/$0.72 and 106% upside.

antherxiii,

News update

Click HERE

Thursday 31st May 2007, 9.30am to 1.00pm followed by buffet luncheon

Venue: The Brewery, Chiswell Street, London, EC1

In association with BDO Stoy Hayward

The following companies will be making presentations:


Cardinal Resources Plc

Petroneft Resources Plc

Meridian Petroleum Plc

Monarch Energy Ltd

Volga Gas


Guest Speaker: Anthony Robinson

oilbarrel.com's Russian specialist will talk on President Putin's creeping takeover
of the oil and gas sector, and particularly what it means for BP


To attend the conference please e-mail: conference@oilbarrel.com requesting a reserved place.

I caught the tail end of a news bulletin about the political difficulties in the Ukraine having been resolved? Did anyone hear the full story and do we know what impact this will have upon CDL?

Link Here

29.05.2007

Cardinal Resources Keen To Focus On Production Increases As Construction Project Nears Completion Despite Continued Uncertainty On JAA Gas Sales and RC Reinstatement

It has been a difficult six months for Cardinal Resources, which has been under attack from disgruntled shareholders led by hedge fund QVT Financial. But having survived an EGM called by QVT in a bid to oust CEO Robert Bensh, the AIM company is determined to refocus on its development work in Ukraine where production is set to increase almost four-fold this year. Investors keen for an update on the company would do well to attend oilbarrel.coms conference on Thursday 31st May, where Bensh is due to make a presentation.

QVT owned 16.18 per cent of Cardinal when it launched its first broadside against current management in November 2006. The hedge fund alleged the share price had languished due to inappropriate financing structures and bloated central costs. Cardinal rigorously defended itself against these allegations - those who remember Benshs bullish performance at an oilbarrel.com conference in September 2005 would expect nothing less - and said it was disappointing that QVT had chosen to conduct a campaign of misinformation via the press.

Cardinal has pointed out it has taken steps to reduce G&A costs by US$1.5 million to US$2 million this year, reducing the number of full-time executives in London and Houston and outsourcing non-core activities. Costs that were incurred in 2006, such as recruiting staff in Ukraine and legal expenses associated with its RC field reinstatement (of which more later), are not expected to be repeated this year.

The company has also issued extensive statements defending its financing arrangements with Silver Point Finance. In December 2005 the company secured a US$38 million bridge financing facility from Silver Point in order to finance its re-instatement to the RC field. In December 2006 there was an additional financing, increasing the facility to US$55.5 million to progress well workovers and new drilling to boost production. The terms may not be generous but Cardinal said it entered these arrangements because it was unable to access conventional bank debt and it couldnt have raised equity at a price approaching its IPO placing price. In this, it is not alone: financing constraints have curtailed the ambitions of many an AIM E&P over the past two years.

The re-instatement of Cardinals interest in the RC field has been a thorny issue since the 2005 IPO. The RC field is a large underdeveloped gas field (1.54 tcf original gas in place) located in the Dnieper Donets basin, 200 kms east of Kiev in the Poltava Oblast. Cardinal, which evolved from cash-strapped E&P Carpatsky, is in protracted negotiations with field partner Ukrnafta to increase its interest in the RC field from 14.91 per cent to the 45 per cent it was before Carpatsky stopped paying the bills.

Ukrnafta has previously acknowledged Cardinals right to this reinstatement of interest - which would more than triple its share of the RC reserves to almost 50 million - but political upheavals in Ukraine and various shifts in position on this issue within Ukranafta have hampered progress. The delays in restoring the working interest to its former level have impacted on the work programme for the field and seen a reserves downgrade.

Cardinal continues to press for the reinstatement and, it says, is exploring all legal avenues to ensure that its contractual right is respected. Should the opportunity arise to reinstate the full 45 per cent, Cardinal has the funds to do so via its Silver Point financing arrangement.

Now the company is focusing on getting its 100 per cent owned assets in Ukraine up and running. Construction of gas gathering and separation facilities is almost complete and should be operational by mid-year. Financing remains an issue for the company, however. Its plans to grow production this year from 800 barrels of oil equivalent per day to 3,000 boepd. An increase of 1,400 boepd is pretty much guaranteed because thats the volume already awaiting hook-up to production facilities. But a further 800 boepd is subject to the company having sufficient funds to complete three well workovers in the second half of the year.

Cardinal expects this cash to come from the recommencement of its joint activity agreement gas sales, which are currently being transferred to storage pending clarification of new gas sales rules in Ukraine. The JAA issue is one of those complex legal and regulatory wrangles that can bedevil operations in Ukraine and other Former Soviet Union destinations.

At the beginning of this year the Cabinet of Ministers of Ukraine amended an existing regulation on fixed pricing of gas sales to include joint activity agreements between state firms Naftogaz, Ukrnafta and Nak Nadra and foreign companies. Cardinal was verbally informed by the Ministry of Fuel and Energy that its net portion of JAA production will not be affected but the company is still seeking clarification on the actual implementation of this resolution.

As a precaution, earlier this year it elected with its partner Ukrnafta to transfer all JAA associated gas production from the RC field to storage (about 20 per cent of the companys output) for future sale at higher prices. Now in May and still without written clarification on this point, Cardinal has elected with its other JAA partner Ukrgaz to transfer all production from the BC field into storage, meaning that about 80 per cent of the companys output is in storage. In the first quarter of this year, the company had 58,542 barrels of oil equivalent in storage.

If fixed prices were applied to the companys JAA production then this could affect the net present value of its reserves as free market prices are approximately two to three times those of controlled prices. The transfer of so much production to storage has reduced the companys monthly sales and EBITDA/cash flow by US$450,000 and $360,000 respectively. It believes this short term hit is worth it, however, because in the long run, once clarification is received, it will benefit the company to have arrangements in place to sell the gas at the higher free market price. (Importantly the companys creditor Silver Point Capital has waived covenants to reflect the present shortfall in cash flow due to the suspension of JAA gas sales).

Its also important to note that the impact on cash flows of storing the JAA gas should be offset by higher volumes from the BC licence area once the new gas gathering and separation facilities are operational by the end of the second quarter. The increased production in non JAA portions of the licence will be free from price restrictions and are expected to be sold at free market prices.

Given these travails, it is little wonder that the company is focusing its development activities on those licences it owns and operates 100 per cent. The company has three workover and nine development locations identified for drilling in the Bilousivsko-Chornukhinska (BC) and North Yablunivska (NY) licence areas. Seismic work is also underway: on the Dubrivska (DB) licence, a 25 sq km shoot has identified one sidetrack opportunity and two additional well locations while a 65 sq km survey on the BC licence will help optimize production efforts and define future development drilling locations. The NY licence area may see a 35 sq km 3D survey in the third quarter, ahead of drilling in 2008. It hopes to identity an additional 10-16 drilling locations on its acreage.

Thanks for the informative post!

Post from an Oil Barrel attendee yesterday at AFN :


"Kievtrader - 31 May'07 - 20:48 - 1642 of 1644


Oilbarrel conference today in London- Bench spoke again. Gas facility will be ready between around 1st and 15th July +/- 5 days. Production will then go from current 800boe/day to about 1800 boe/day then 3000 boe/day by end 2007. Next year 4/8 wells planned. So news flows due in July re gas facility and ramping up of production. Going higher. "

May 2007 Company Fact Sheet :

http://www.cardinal-uk.com/PDF_070508_Cardinal_Factsheet.pdf




May 2007 Company Presentation :

http://www.cardinal-uk.com/PDF_070508_Cardinal_Presentation.pdf

"bobobob5 - 1 Jun'07 - 11:07 - 1646 of 1646

Oilbarrel:

* mid-July c. 2000 bopd, target 3000 bopd end-2007

* expect to shift some 3P into 2P category by end 2007

* "Force multiplier" philosophy, bring best practice to local operations

* Will announce 2008 bopd tragets later

* In Ukraine, P1 assets can be bought at $1 to $2.50 per barrel

* Reserves could rise from 32.5MM to 60/70MM barrels with completeion of the protracted 'RC' arrangements

* generally +ve about Kazakstan

* broadly -ve about Russia

I don't hold these, but a modest investment seem to have its attractions.

but IMHO DYOR etc as always"

Feb 2007 Broker Note on CDL is in the web folder below :

http://www.esnips.com/web/PPOtherStuff


.

http://www.oilbarrel.com/feature/article.html?body=1&key=oilbarrel_features_en:1180709723&feed=oilbarrel_en

01.06.2007

Conference Report Part 2: Cardinal Seeks Control In Ukraine, Meridian Is Ready To Turn On The Gas In The US While North Sea Exploration Is The Name Of The Game For Canadas Monarch Energy


Its not Russia but to many investors Ukraine shares many of the same risks. However Robert Bensh, the quick-firing US chairman and chief executive of AIM-quoted Cardinal Resources, was keen to show delegates at oilbarrel.coms conference on May 31 that despite the often complex and uncertain operating conditions, it is possible to build a profitable E&P in Ukraine.

On paper there is certainly plenty to recommend the country. Ukraine has the resources, with around 40 tcf of gas and 390 million barrels of oil, not to mention extensive energy infrastructure and, following the 2006 stand-off with Russia, domestic gas prices have reached a level that is proving attractive to foreign energy investors. In the last two years, said Bensh, gas prices have risen from US$2 per thousand cubic feet to US$4.80.

Cardinal has learnt a lot in the two years since its April 2005 IPO. The company came to AIM with a 45 per cent interest in the Bytkiv field and a 14.9 per cent interest in the RC field (with an option to increase its equity to 45 per cent for US$14 million). Both assets were held in joint venture with state firms Ukgazvydobyvannia and Ukrnafta - and there lies the crux of the problem. These joint venture assets are now subject to a gas pricing cap and Ukrnafta is stalling on Cardinals right to exercise its valuable RC option.

This has encouraged the AIM firm to focus its energy on the development of the BC, NY and DB licences, which it owns 100 per cent following its 2006 acquisition of Rudis Drilling Co. Cardinal has prioritised the development of the Rudis field and current production of 800 barrels of oil equivalent per day should increase to 1,800 to 2,000 boepd by mid-July as new gas facilities are completed before stepping up to 3,000 boepd by year end. In the meantime the company is shooting 3D seismic over its 100 per cent controlled licences in a bid to identify new drilling targets, with up to eight wells planned for 2008. In the short term I am bearish on doing business with state entities, said Bensh. But in the longer term there are still opportunities.

It is for this reason that the company is not using strong arm tactics to force through its option on the 1.5 tcf RC field, which, once executed, would more than triple the companys share of the RC reserves to almost 50 million boe for just 50 cents per barrel of oil equivalent. It is little wonder that Ukrnafta is dragging its feet.

If they do not honour this they will find themselves in Stockholm arbitrating this and they will get their ass kicked, said Bensh. But in the long term thats not the bright thing to do. We are pursuing every angle we can to increase that interest. But you do not buy Cardinal stock for this. You buy Cardinal stock for the 3,000 boepd of production by year-end.

oilbarrel.com regulars are not a shy bunch and during the Q&A Bensh was asked about the companys recent troubles with dissident shareholder QVT Financial. At the end of last year, QVT requested an EGM and proposed the removal of Bensh as CEO. That motion was defeated at the March EGM, with 70 per cent of shareholders disagreeing with QVT, which holds around 17 per cent of the outstanding shares. Bensh was keen to down play the situation.

We have not been invited to their parties and they were not invited to our Christmas party but we have a continuing dialogue and I have nothing negative to say about them, said the CEO. Im sorry we spent time and money on the EGM but it was annoying at best.

Bensh added that the company was looking to diversify the asset base outside Ukraine but ruled out investments in Russia and the US as being too much trouble.

To view Cardinals presentation click here : http://www.esnips.com/web/PPOtherStuff

Thanks for the presentations papalpower. Good reading and an impressive growth in production forecasted.

Nice to see some positive movement today.

Yes, and long may it last!

recent media comment, here

More news, HERE

Takeover Bid Approach...................

Wonder if this news has anything to do with the news on Cardinal today (as CDL has Ukrainiane assets) :

************************************************

Shell confirms interest in Ukrainian mineral resources

KYIV. Aug 23 (Interfax) - Shell Exploration & Production B.V. (The Netherlands) has confirmed its interest in prospecting and developing oil and gas deposits in Ukraine, including in the country's portion of the Black Sea shelf.

Shell is interested in any deposits on Ukrainian territory, the company's public relations manager Antonius Papaspiropoulos told Interfax.

"Despite losing a tender for a product-sharing agreement on the Kerch stretch of the Black Sea shelf, the company hasn't given up and is ready to bid in similar tenders," he said.

Papaspiropoulos said there was dynamic progress in additional prospecting in the Shebelinskoye and Zapadno-Shebelinskoye fields in the Dnepr-Donetsk basin, in cooperation with Ukraine's Ukrgazbydobuvannya company.

Seismic exploration of the fields is due to begin in late 2007-early 2008, and drilling is scheduled for the first half of 2009. lg md

http://www.interfax.ru/e/B/finances/26.html?id_issue=11844163

Comment, HERE

what price u think CDL is worth if taken over

comment, click HERE

scotivestor,

Sadly that looks unlikely at present, and 'cash is tight'!

INTERIM RESULTS DELAYED - CARDINAL SUSPENDED
LONDON Monday, 01 October 2007
Cardinal Resources plc (AIM:CDL) (Cardinal or the Company), an independent oil and gas exploration and production company operating in Ukraine, today announces a delay in release of its Interim Results.

On 18 September 2007, Cardinal announced that refinancing discussions continue and cash flow remains very tight.

The Company has now received a proposal from Silver Point Capital LP, its main provider of finance (who are a related party under the AIM Rules) to include the possible purchase of the Companys assets. In addition, another potential provider of finance (who is not a related party) has made proposals to the Company which are in course of amendment to include the restructuring of the Companys balance sheet, the underwriting of an institutional private placement or the purchase of all of the Companys assets.

It has not yet been possible to conclude negotiations with either party or reach agreement on acceptable terms that the Board of Cardinal could recommend to shareholders.

In the absence of such agreement and with consequent uncertainty over the source of short or medium term funding, the Company's Interim Results to 30 June 2007 which were due for publication by 28 September 2007, have been delayed. The Company has requested suspension of its shares to trading on AIM until it can both clarify its financial position and publish its Interim Results for the six months to 30 June 2007.

Cardinal have been delisted from AIM!

Commiserations to any holders here.

Media comment, click HERE