6th Feb 2007 17:02
Cardinal Resources plc06 February 2007 LONDON - 6 February 2007 Cardinal Resources plc (AIM:CDL) ("Cardinal" or "the Company"), an independentoil and gas production and exploration company operating in Ukraine, todayannounces significant general and administrative ("G&A") cost reductions. The costs are expected to reduce by $1.5 to $2.0 million in 2007 from actual G&Aincurred in 2006, largely due to the following factors: • The hiring of technical and operating in-country personnel for Ukraine operations was completed last year. One-off hiring costs are not expected to be repeated. The Company now has an integrated Western and Ukrainian operations and production team in place, with an average of 20 years of experience operating in the region to develop the Company's licence areas. • The Company has reduced the number of full-time executives in London and Houston and outsourced other non-core activities. • The Company incurred legal and government affairs costs associated with the RC re-instatement in 2006 that are not expected to be repeated in 2007. The Company will continue to rationalise G&A as well as the operational coststructure of the business. The Company's focus will continue to be on its development efforts on its 100%owned and operated licence areas and the completion of its gas processingfacility in order to reach a production run rate of 3,000 boepd by year end. ### Cliff West, Executive Vice President and Chief Operating Officer of Cardinal(Member of the American Association of Petroleum Geologists - CertifiedPetroleum Geologist # 1563) is the qualified person that has reviewed andapproved the technical information within this press announcement. 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. Definition: boepd: barrels of oil equivalent per day. ### For further information please contact: Cardinal Resources Brunswick GroupCharles Green / Natalia Egorova Paul Scott+44 20 7936 5250 +44 20 7404 [email protected] [email protected] Nominated AdviserNabarro Wells & Co. LimitedJohn Wilkes / Marc Cramsie+44 20 7710 [email protected] Notes to Editor Cardinal Resources plc Cardinal Resources plc is an independent oil and gas production and explorationcompany 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 information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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