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

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