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

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) :

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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