Business
Publication of Reserve Report
Publication of Reserve Report.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n15 May 2006\n\n\nCARDINAL RESOURCES PLC ANNOUNCES PUBLICATION OF RESERVE REPORT\n\nRESERVES INCREASE 75% SINCE IPO TO 32.5 MMBOE\nPV 12 UP 162% TO $105.6 MILLION\n\nLONDON - Monday, 15th May 2006\n\nCardinal Resources plc (AIM:CDL) ('Cardinal' or 'The Company'), an independent\noil and gas production and exploration company operating in Ukraine, announces\nthat the Company's independent competent person, Scott Pickford Ltd., has today\nsupplied its reserve report for Cardinal, as of 31st December 2005.\n\nTotal proved (P1) and probable (P2) reserves for the Company are estimated to be\n32.5 million barrels of oil equivalent (MMBOE), of which 85% is natural gas and\n62% P1. The year end estimate represents a 75% increase over the reserves stated\nin the 31st March 2005 Scott Pickford report published at Cardinal's admission\non AIM in April 2005. The increase is due to the acquisition of Rudis Drilling\nCompany that Cardinal made in October 2005. The pre-tax present value of the\nCompany's reserves, discounted at 12%, has increased 162% to $105.6 million over\nthe same period due to the inclusion of the Rudis reserves and upward revisions\nto expected future gas and oil prices in Ukraine. The pre-tax present value\ndiscounted at 10% is $124.7 million.\n\nReserve Data\n------------\nDetailed tables can be found in the Appendix on page 5\n\n P1 P2 P1 + P2\nProperty Total MBOE\n\nRudis 50,818 2,021 10,491 34,118 1,392 7,078 17,569\nRC 50,714 754 9,206 29,183 421 5,285 14,491\nBytkiv 530 295 383 44 26 33 416\nTOTAL 102,062 3,070 20,080 63,344 1,839 12,396 32,477\n\n\nRudis Assets\n------------\nReserves for the Rudis properties have been upgraded to 17.6 MMBOE from the 9.1\nMMBOE stated at the time of the Rudis Drilling acquisition in October 2005. This\nis due to Cardinal's initiation of an aggressive work programme to complete\nseven workovers and initiate drilling operations on seven of eleven identified\ndevelopment locations by year-end 2007 as a result of the well swap with\nUkrgazvydobuvannya (Ukrgaz) conducted in January of 2006. Cardinal is in\nnegotiations to hire three locally-sourced Uralmash drilling rigs which it will\nupgrade using certain modern equipment and supplies. Negotiations are also\nunderway to lease a further Uralmash workover rig. Production at the Rudis\nproperties is anticipated...