Business
G&A cost reduction programme
G&A cost reduction programme.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n06 February 2007\n\n\n\nLONDON - 6 February 2007\n\n\nCardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent\noil and gas production and exploration company operating in Ukraine, today\nannounces significant general and administrative ('G&A') cost reductions.\n\nThe costs are expected to reduce by $1.5 to $2.0 million in 2007 from actual G&A\nincurred in 2006, largely due to the following factors:\n\n • The hiring of technical and operating in-country personnel for Ukraine\n operations was completed last year. One-off hiring costs are not \n expected to be repeated. The Company now has an integrated Western and\n Ukrainian operations and production team in place, with an average of \n 20 years of experience operating in the region to develop the Company's\n licence areas.\n\n • The Company has reduced the number of full-time executives in London \n and Houston and outsourced other non-core activities.\n\n • The Company incurred legal and government affairs costs associated with\n the RC re-instatement in 2006 that are not expected to be repeated in \n 2007.\n\nThe Company will continue to rationalise G&A as well as the operational cost\nstructure of the business.\n\nThe Company's focus will continue to be on its development efforts on its 100%\nowned and operated licence areas and the completion of its gas processing\nfacility in order to reach a production run rate of 3,000 boepd by year end.\n\n ###\n\nCliff West, Executive Vice President and Chief Operating Officer of Cardinal\n(Member of the American Association of Petroleum Geologists - Certified\nPetroleum Geologist # 1563) is the qualified person that has reviewed and\napproved the technical information within this press announcement.\n\nThis release may contain certain forward-looking statements. These statements\nrelate to future events or future performance and reflect management's\nexpectations regarding Cardinal's growth, results of operations, performance and\nbusiness prospects and opportunities. Such forward-looking statements reflect\nmanagement's current beliefs, are based on information currently available to\nmanagement and are based on reasonable assumptions as of this date. No\nassurance, however, can be given that the expectations will be achieved. A\nnumber of factors could cause actual r...