27th Oct 2005 12:31
Cardinal Resources plc27 October 2005 CARDINAL RESOURCES PLC COMPLETES ACQUISITION OF RUDIS DRILLING COMPANY MR. MISBAH AL DROUBI ELECTED TO THE BOARD OF DIRECTORS LONDON - Thursday, 27th October 2005 Cardinal Resources plc (AIM:CDL), an independent oil and gas exploration andproduction company, today announces that it has completed the acquisition ofRudis Drilling Company from Hares Group Limited. The acquisition adds 9.1 MMBOE,or an increase of approximately 50%, to Cardinal's existing reserves of 18.4MMBOE and increases net daily production by 75% from an average of 631 barrelsof oil equivalent per day (boepd) in the first six months of the year to over1,100 boepd. With this acquisition, Cardinal will now own and operate three oil and gaslicences - Dubrivska (DB), Bilousivsko-Chornukhinska (BC) and North Yablunivska(NY) - and a 50% working interest in a Joint Activity Agreement (JAA) withUkrgazvydobuvannya, a subsidiary of Naftogaz Ukraine. All licence areas arelocated approximately 40 kilometres from the Rudivsko-Chernovozavodske Field inEastern Ukraine where Cardinal holds interests in its existing JAA wells withUkrnafta. With the Rudis assets transaction, the Company plans to drill five developmentwells, complete four workovers and expand the gathering systems in the threelicence areas for approximately $20 million. Currently, one exploration well isdrilling in the DB licence area, the BC #13 workover is in progress and work isunderway to construct two pipelines in the Kulickykhin field to tie in existingwells, with scheduled completion and sales in the first quarter of 2006.Drilling of the NY #4 well is scheduled to commence in first quarter of 2006. In accordance with the terms of the agreement, Hares Group has the right toappoint a non-executive member to Cardinal's Board of Directors and the HaresGroup has selected Mr. Misbah Al Droubi to fill this seat. Mr. Al Droubi, aged46, has served as the Chief Executive Officer of Hares Group Limited since 2002.Mr. Al Droubi was formerly a Director of "L'atelier d'amenagement de l'espaceSARL" in Syria and the "International Company for Medical Rehabilitation S.A."in Cairo. He is currently a Director of "AWBC Steel Traders GmbH" in Austria.Mr. Al Droubi's Board membership at Cardinal is for a three-year term, subjectto re-election on an annual basis at the Company's AGM. Mr. Al Droubi haselected to waive cash compensation for his appointment in exchange for the grantof share options subject to Board approval. There are no other mattersconcerning Mr. Al Droubi that must be disclosed under Schedule 2(g) of the AIMRules for Companies. "I'm very pleased to welcome Misbah to the Cardinal Board of Directors," saidRobert J. Bensh, Cardinal's Chairman and Chief Executive Officer. "Hissignificant international experience and deep knowledge of Ukraine business andpolitics adds another valuable member to the Cardinal team." As a result of the transaction, a number of key Rudis employees will joinCardinal in Ukraine. They bring with them considerable technical experience andfamiliarity with the domestic operations that will further strengthen theincumbent Cardinal team and broaden and deepen the knowledge base. Following the closure of the Rudis transaction, Cardinal has 114,554,109Ordinary Shares outstanding, of which 21,949,364 shares, or 19.2%, is held bythe Hares Group. Cardinal Resources plcCardinal Resources plc is an independent oil and gas exploration and productioncompany with assets in Ukraine. Cardinal is an experienced operator in thecountry focused on expanding its existing operations through the farm-in oracquisition of additional upstream oil and gas assets that can be furtherdeveloped through the application of modern technology and expertise. ### This release may contain certain forward-looking statements. These statementsrelate to future events or future performance and reflect management'sexpectations regarding Cardinal's growth, results of operations, performance andbusiness prospects and opportunities. Such forward-looking statements reflectmanagement's current beliefs, are based on information currently available tomanagement and are based on reasonable assumptions as of this date. Noassurance, however, can be given that the expectations will be achieved. Anumber of factors could cause actual results to differ materially from theprojections, anticipated results or other expectations expressed in thisrelease. While Cardinal makes these forward-looking statements in good faith,neither Cardinal, nor its directors and management, can guarantee that theanticipated future results will be achieved. Contact:Kate SpiroDirector, Investor [email protected]+44 (0) 20 7936 5258 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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