6th Mar 2007 18:33
Cardinal Resources plc06 March 2007 LONDON -Tuesday, 6th March 2007 Cardinal Resources plc (AIM: CDL) ("Cardinal" or the "Company"), an independentoil and gas exploration and production company operating in Ukraine, notes theannouncement on RNS Reach yesterday the 5th March by dissident shareholder QVT Financial LLP ("QVT"). Cardinal has the following observations: • Mr Bensh has 12 years experience in the oil and gas industry including over 7 years experience in Ukraine where he has developed important business relationships. • Mr Bensh is supported by a strong and loyal team of geologists, operational engineers and technical engineers including the Ukrainian native speakers in senior management. The Board believes that any change in the management structure of Cardinal at this critical point as the Company executes on its strategy would be detrimental to the business and to shareholder value. • The CV of Mr Effimoff as described in the QVT letter does not mention anyrelevant experience in Ukraine that would enable him to complete the tasks infront of the Board as an AIM quoted company. Cardinal is unaware of whether Mr Effimoff has ever been to Ukraine or served on the Board of an AIM quoted company. • The rationale for the Silver Point financing which QVT seeks to criticize is fully explained in Cardinal's own Circular to shareholders of 14th February 2007. In particular, it funded the acquisition of Rudis and will allow the Company to fund a significant increase in production as explained in thatCircular. $14.1 million of the total, which is as yet undrawn and therefore not incurring interest, remains available to fund the RC re-instatement. • QVT purchased Cardinal's shares in full knowledge of the material terms ofthe first Silver Point financing, which was fully disclosed in regulatory announcements dated 1st December 2005 and 23rd December 2005. Cardinal respects and encourages the views of all shareholders. The Companyregrets the diversion of management time and the expense created by the actions of QVT. The Board of Cardinal reiterates its unanimous recommendation that shareholders vote AGAINST the resolution proposed by QVT. ### For further information please contact: Cardinal Resources Brunswick GroupCharles Green / Natalia Egorova Paul Scott+44 (0) 20 7936 5250 +44 (0) 20 7404 [email protected] [email protected] Notes to Editor Cardinal Resources plc Cardinal Resources plc is an independent oil and gas production and exploration company with assets 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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