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A little known Oil play floated on AIM in 2005 has a lot in common with JKX Oil and Gas. Cardinal Resources, based in the Ukraine is cutrrently producing 1172 boepd with plans for massive future development. See presentation here http://www.cardinal-uk.com/Cardinal_Factsheet_14_03_06.pdf

For further in depth research see their web address:
www.cardinal-uk.com

I would welcome your views.

austing2253,

Some nice numbers, and their future price assumptions are on the conservative side IMO.

The problem with CDL is the poor deal they did to raise finance.

They have raised cash at around 15%!

They have significant numbers of warrants outstanding at an excise price of 27p.

This means that if the shareprice were to rsie significantly, the warrant holders would convert, and existing shareholders would suffer massive dilution.

I think it is the warrant overhang that is preventing CDL from rerating.

Thanks for that Andy. Will do some more research into the warrant situation.

austing2253,

From the excellent Proactiveinvestors.com article;

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"Cardinal signed a USD $38 million finance agreement with Silver Point Finance. The agreement carries a harsh interest rate of 15% per annum for three years and is also the primary reason for the massive number of outstanding warrants on Cardinal Resources. In simple terms the financing can be converted into 80 million shares at a strike price of 27.5p".

CARDINAL RESOURCES PLC ANNOUNCES PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005



LONDON Tuesday, 30th May 2006



The Directors of Cardinal Resources plc (AIM:CDL) (Cardinal or the Company) today announce the preliminary results of the Company for the year ended 31 December 2005.



HIGHLIGHTS



Admitted to the London Stock Exchanges Alternative Investment Market (AIM) in April 2005 raising $20 million for growth



Proved and probable reserves increased over 75% to 32.5 MMBOE from 18.4 MMBOE at the time of admission to AIM, largely as a result of the acquisition of Rudis Drilling Company



Average daily production at 31 December was up 72% year-on-year to 1,154 barrels of oil equivalent



Rudis Drilling Company was acquired in October 2005 for $14.8 million, or $0.85 per BOE, increasing reserves by 17.6 MMBOE and boosting the number of owned and operated licence areas held by the Company



$38 million financing was secured in December 2005 from Silver Point Capital (SPC) to assist in reinstating Cardinals net profit interest in the Rudivsko-Chernovozavodske (RC) Field back up to 45% and to provide additional working capital for Cardinals field development programme



Aggressive work programme started on the Rudis assets to increase current year-end production of 1,154 boepd by 2,500 to 3,000 boepd by the end of 2007 with the initiation of drilling on seven new development wells and seven workovers



Gas prices increased 45% to $2.38/Mcf at 2005 year-end from $1.64/Mcf at the end of 2004



Group turnover increased 52% to $4.6 million, including the Companys share of joint venture turnover at the Bytkiv Field



Gross profit increased to $1.4 million (2004: $0.4 million)



Robert J. Bensh, Chairman and Chief Executive of Cardinal, said: The year 2005 was one of exceptional achievements and continuing challenges for the Company.



While we are proud of our accomplishments and the value we have created by nearly doubling our reserves and production since the IPO, developing our operating position in Ukraine, enhancing the strength of our board and raising the capital necessary to develop our assets, our accomplishments in 2005 are nothing more than milestones as we focus and stay disciplined towards achieving our longer-term goal of becoming a major independent company operating in Ukraines upstream oil and gas sector.



To view the Chairmans Statement, Operational and Financial Reviews and Summarised Financial Statements, please open the attached file or log on to http://www.cardinal-uk.com/investor_news.html.



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

LONDON Friday, 21st 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 Robert J. Bensh, Chairman and Chief Executive Officer of Cardinal, purchased 99,000 Cardinal Ordinary Shares at a price of 18.25p on 20th July.

Mr. Benshs total holding in the Company now equals 1,662,533 Cardinal Ordinary Shares, or 1.5% of the issued share capital.

CARDINAL RESOURCES PLC 2005 ANNUAL REPORT AND ACCOUNTS



LONDON Wednesday, 21st June 2006



Cardinal Resources plc (AIM:CDL) (Cardinal or the Company), an independent oil and gas production and exploration company operating in Ukraine, announces that its Annual Report and Accounts for the year ended 31st December 2005 have today been posted to shareholders.



Copies of the Annual Report are available from the offices of Cardinal Resources: Whitefriars House, 6 Carmelite Street, London EC4Y 0BE for the period of one month. The report can also be viewed and downloaded at www.cardinal-uk.com.



Cardinals Annual General Meeting will be held at 10 am on 27th July 2006 at the Crowne Plaza Hotel London The City, 19 New Bridge Street, London, EC4V 6DB.



###



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.




06-06 Annual Report Announcement.pdf (27.7 KB)

Cardinal Resources Chairman has just added another 45,000 shares. See link for details...

http://www.cardinal-uk.com/Director_Holdings_19_07_06.pdf

LONDON Friday, 21st 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 Robert J. Bensh, Chairman and Chief Executive Officer of Cardinal, purchased 99,000 Cardinal Ordinary Shares at a price of 18.25p on 20th July.

Mr. Benshs total holding in the Company now equals 1,662,533 Cardinal Ordinary Shares, or 1.5% of the issued share capital.

Interesting stuff, Austing - I agree the co looks undervalued, but the debt/warrant situation pointed out by Andy is nasty.

Cardinal have been delisted from AIM!

Commiserations to any holders here.

Media comment, click HERE



Soultraders,

The debt/warrant situation mentioned seems to have ben a major stumbling block here, and was a clear warning IMO.