Powered by IST's


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.

New RNS out today with up to date value of assets, looks like CDL'S shares are trading at a heavy discount.

Would welcome anyones comments about this new valuation report.

Gerry

Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'The Company'), an independent
oil and gas production and exploration company operating in Ukraine, announces
that the Company's independent competent person, Scott Pickford Ltd., has today
supplied its reserve report for Cardinal, as of 31st December 2005.

Total proved (P1) and probable (P2) reserves for the Company are estimated to be
32.5 million barrels of oil equivalent (MMBOE), of which 85% is natural gas and
62% P1. The year end estimate represents a 75% increase over the reserves stated
in the 31st March 2005 Scott Pickford report published at Cardinal's admission
on AIM in April 2005. The increase is due to the acquisition of Rudis Drilling
Company that Cardinal made in October 2005. The pre-tax present value of the
Company's reserves, discounted at 12%, has increased 162% to $105.6 million over
the same period due to the inclusion of the Rudis reserves and upward revisions
to expected future gas and oil prices in Ukraine. The pre-tax present value
discounted at 10% is $124.7 million.

Reserve Data
------------
Detailed tables can be found in the Appendix on page 5

P1 P2 P1 + P2
Property Total MBOE

Rudis 50,818 2,021 10,491 34,118 1,392 7,078 17,569
RC 50,714 754 9,206 29,183 421 5,285 14,491
Bytkiv 530 295 383 44 26 33 416
TOTAL 102,062 3,070 20,080 63,344 1,839 12,396 32,477


Rudis Assets
------------
Reserves for the Rudis properties have been upgraded to 17.6 MMBOE from the 9.1
MMBOE stated at the time of the Rudis Drilling acquisition in October 2005. This
is due to Cardinal's initiation of an aggressive work programme to complete
seven workovers and initiate drilling operations on seven of eleven identified
development locations by year-end 2007 as a result of the well swap with
Ukrgazvydobuvannya (Ukrgaz) conducted in January of 2006. Cardinal is in
negotiations to hire three locally-sourced Uralmash drilling rigs which it will
upgrade using certain modern equipment and supplies. Negotiations are also
underway to lease a further Uralmash workover rig. Production at the Rudis
properties is anticipated to increase by 2,500 to 3,000 barrels of oil
equivalent per day (boepd) by the end of 2007 from 597 boepd at 31st March 2006.
The capital investment to develop these locations is forecast to be in the range
of $25 to $42 million, dependant upon the number of wells drilled, the extent of
modern equipment utilised and the availability of finance.

Rudivsko-Chernovozavodske (RC) Field
------------------------------------
Reserves for the RC Field have been reduced slightly from 16.2 MMBOE to 14.5
MMBOE due to poorer than expected production at Well #117. The delay Cardinal is
experiencing in reinstating its net profit interest in the field back up to 45%
has also resulted in setbacks in executing the work programme set out at the
time of the IPO. The workover on Well #102 has been temporarily suspended and it
is expected that, apart from the four wells Ukrnafta is currently drilling
outside of the JAA, no further wells will be drilled in the field in 2006.

RC Field Reinstatement
----------------------
Cardinal expects discussions with Ukrnafta and its primary shareholders
regarding the reinstatement of its net profit interest in the RC Field back up
to 45% and the purchase of shares in four wells currently drilling on the field,
will resume after a Parliamentary coalition has been formed in Ukraine. In the
meantime, the active work programme on the Rudis assets is expected to produce
positive results for the Company and more than compensate for the setbacks at
the RC Field.

Bytkiv-Babchenske (Bytkiv) Field
--------------------------------
Effective 1st January 2006 the Ukrainian Government imposed a 59% increase in
taxes on oil produced in Ukraine. This coincided with the expiration of Bytkiv's
royalty-free status which had previously been granted due to the technical
challenges of operating the field. Consequently, the economics for drilling new
wells in the Bytkiv Field have diminished significantly. UkrCarpatOil - the
Joint Venture (owned 50% by Cardinal) that owns and operates the Bytkiv licence
- will therefore focus primarily on low cost, high return workovers, and Scott
Pickford has reduced the P1 and P2 reserves in the field. However, Cardinal is
currently in discussions with Ukrnafta to decide whether the drilling of well #
1007 will proceed as planned.

Valuation
---------
The Scott Pickford report also provides updated present values for the Company's
reserves based on the new reserve data inclusive of the Rudis assets and a more
positive outlook for gas and oil prices in Ukraine. The pre-tax net present
value of Cardinal's reserves discounted at 12% (PV12) has increased 162% to
$105.6 million from $40.3 million at the time of Cardinal's listing on AIM in
April 2005. The pre-tax PV10 value is set at $124.7 million and will be the
figure Cardinal uses going forward to bring the Company in line with valuations
attributed to its peers.

Property PV @ 10% ($ ,000) PV @ 12% ($ ,000)

Rudis 71,983 61,107
RC 50,420 42,336
Bytkiv 2,316 2,173
Total 124,720 105,616


The following price assumptions were made by Scott Pickford in establishing the
present values:

Time Period Forecast Average Forecast Average Forecast Average
Gas Price/Mcf Oil Price/Bbl Cond Price/Bbl

2006 $2.60 $53.36 $59.67
2007 $2.67 $54.20 $60.70
2008 to 2020 $3.40 $54.45 $60.98
2021 to 2030 $4.52 $70.19 $78.61

Commenting on the new reserve report, Robert J. Bensh, Chairman and CEO of
Cardinal Resources said, 'The Scott Pickford report shows what a long way
Cardinal has come since the AIM listing in April 2005. The acquisition of Rudis
Drilling Company has more than compensated for the setbacks we have experienced
in the work programmes on our original assets.

'The new reserve figures show that the Rudis acquisition was made at the price
of just $0.85/BOE and we will be conducting a significant amount of development
activity on these properties over the next few years to fully exploit their
potential. Gas prices have also increased more than our expectations, resulting
in the sharp increase in the net present value of our reserves. We plan to
continue to create value for our shareholders by executing similar acquisitions
at attractive prices that boost both reserves and increase production.'

Glossary of Terms

Bbl Barrel of oil
Bcf Billion cubic feet of gas
Boepd Barrels of oil equivalent per day
Mbbls Thousand barrels of oil
Mcf Thousand cubic feet of gas
MMcf Million cubic feet of gas
MBOE Thousand barrels of oil equivalent
MMBOE Million barrels of oil equivalent
P1 (Proved) Those oil or gas reserves considered to have at least a 90%
chance of being recovered (using the Society of Petroleum
Engineers definitions)
P2 (Probable) Those oil or gas reserves considered to have at least a 50%
chance of being recovered (using the Society of Petroleum
Engineers definitions)PV Present value

The classification Standard used for the Scott Pickford report is the Canadian
National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities
('NI 51-101') and specifically the definitions and interpretations detailed in
the Canadian Oil and Gas Evaluation Handbook (COGEH), Volumes 1 & 2, as endorsed
by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).

Scott Pickford confirms that it has reviewed this press release and finds that
the information presented herein has been extracted from its Report in a manner
which is not misleading and provides a balanced view of the Report.

###

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

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;

-------------------------

"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.