Business
Refinancing
Refinancing.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n22 December 2006\n\n\n\nLONDON - 22 December 2006\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 that Cardinal and Silver Point Finance ('Silver Point') have amended\nand restated the existing US$38 million bridge financing facility entered into\nin December 2005 ('Bridge PIK Notes') and have increased the facility by US$17.5\nmillion to US$55.5 million.\n\nThe revised Bridge PIK Note financing transaction will allow the Company to\naccess additional finance to continue its drilling and workover programme in\nUkraine in line with its business plan, which the Directors believe should\nenable the Company to meet its stated production targets and fulfil its\nfinancial obligations, thereby increasing shareholder value.\n\nThe Directors believe that shareholder value will be maximised through\nachievement of two key objectives:-\n\n 1. Completion of the Rudis workovers and drilling programme together with \n the tie in of the new and renewed wells to the new gas plant and \n existing Ukrainian pipeline; and\n\n 2. Re-instatement of the Company's net profit interest in the\n Rudivsko-Chernovozavodske Field ('RC Field') to 45% \n ('RC re-instatement').\n\nCardinal aims to achieve these two objectives within the next 6 to 12 months.\n\nThe Company has expanded the engagement of its nominated adviser, Nabarro Wells\n& Co. Limited, to assist the Company in considering strategic alternatives to\nmaximise shareholder value. This exercise is expected to conclude after the\nCompany's work towards its two key objectives has progressed significantly.\n\nPurpose of New Funding\n\nThe new funding will be used to:\n\n • Accelerate the work programme on the 3 Rudis licence areas, on which \n Cardinal owns the licences and controls operations;\n\n • Re-instate the US$5 million recently drawn from the RC re-instatement \n facility and restore the full $14.1 million facility for the \n RC re-instatement; and \n\n • Settle fees and expenses relating to the transaction and provide for \n general corporate and capital expenditure purposes.\n\nThe work programme on the Rudis properties for 2007 includes drilling four new \nwells and completing seven well workovers. In addition, the Company remains...