Business
Statement re Financing
Statement re Financing.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n23 December 2005\n\n\nCARDINAL RESOURCES PLC ANNOUNCES US$38 MILLION FINANCING\n\n\n\nLONDON - Friday, 23rd December 2005\n\n\n\nCardinal Resources plc (Cardinal) (AIM:CDL), an independent oil and gas\nproduction and exploration company, today announces that it has secured a US$38\nmillion bridge financing facility from Silver Point Finance (Silver Point).\n\n\n\nThe bridge facility will be used to:\n\n\n\n• refinance the US$8 million in PIK Notes issued on 1st December 2005 by\n Cardinal to Silver Point;\n\n\n\n• enable Cardinal to reinstate its net profit interest in the\n Rudivsko-Chernovozavodske (RC) Field back up to 45% by settling the capital\n expenditure account of Cardinal's Joint Activity Agreement (JAA) with JSC\n Ukrnafta (Ukrnafta);\n\n\n\n• reinstate Cardinal's rights to a 45% net profit interest in and\n reimburse Ukrnafta for costs related to the current drilling of four new\n development wells within the RC Field; and\n\n\n\n• settle fees and expenses relating to the transaction and provide for\n general corporate and capital expenditure purposes.\n\n\n\nCardinal has a contractual right to increase its net profit interest in the RC\nField - held through a JAA with Ukrnafta - from 14.9% back up to 45% by settling\nits outstanding balance in the JAA capital account. Since Cardinal's position in\nthe JAA was diluted down to 14.9%, Ukrnafta has, with Cardinal's approval,\ncommenced the drilling of the new four development wells in the RC Field.\n\n\n\nWith sufficient funds in place, Cardinal will resume negotiations in the New\nYear with Ukrnafta to reinstate its net profit interest in the RC Field and in\nthe four development wells, on terms to be agreed by Cardinal and Ukrnafta.\n\n\n\nCommenting on today's announcement, Robert J. Bensh, Cardinal's Chairman and\nChief Executive Officer said, 'This financing enables Cardinal to move into a\nnew phase of development. Reinstating our interest in the RC Field would\ngenerate a substantial increase in reserves and production and value for\nCardinal stakeholders. In addition, this creates a significant opportunity for\nCardinal in Ukraine to substantially increase reserves and production through\nadditional farm-ins or acquisitions, moving the Company closer to its goal of\naggregating reserves in the range of 100-200 million barrels ...