Business
Strategic agreement
Strategic agreement.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n09 August 2007\n\n\nCARDINAL RESOURCES PLC SIGNS ADMINISTRATIVE AND SERVICES AGREEMENT.\n\n\nLONDON - 9 August 2007\n\n\nCardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent\noil and gas exploration and production company operating in Ukraine, today\nannounces that it has entered into an administrative and technical services\nagreement ('the Agreement') pursuant to which Cardinal has undertaken to provide\ncertain services to Condor Exploration, Inc ('Condor'), a company with oil and\ngas exploration and development assets in Columbia.\n\n\nAgreement highlights:\n \n• Cardinal will provide administrative and technical advisory services to \n Condor in relation to Condor's exploration and development assets in \n Colombia\n\n• Cardinal will receive an immediate cash payment of $675,000\n\n• Cardinal will receive an ongoing quarterly administration fee of $250,000\n\n• Cardinal will also receive a 6.75% equity interest in Condor in lieu of \n cash-based reimbursement for historical due diligence related expenditure \n and Cardinal management's time allocated to the due diligence process\n\n• Robert J Bensh, Chairman and CEO of Cardinal has joined the Board of Condor\n\n\nTransaction rationale:\n\nThe signing of the Agreement follows the statement in Cardinal's 2006 Annual\nReport and Accounts that the Company was negotiating an outsourcing agreement to\nprovide services to a third party which would utilise the Company's existing\nresources to deliver an additional revenue stream which could be offset against\nCardinal's fixed costs.\n\n\nAbout Condor:\n\nCondor is a privately-owned and Delaware-incorporated company which was\nestablished earlier this year to undertake the acquisition, development and\noperation of hydrocarbon assets in Colombia. Condor has an economic interest in\nfuture production from three contract areas which are located in the Middle\nMagdalena and Llanos Basins, Colombia.\n\nCondor's strategy is to develop the contracted areas and conduct high impact\nexploration and development projects within its portfolio.\n\nHares Group Energy Limited, a subsidiary of Hares Group Limited which is a 19.2%\nshareholder in Cardinal, owns a 10% equity interest in Condor. No director or\nemployee of Cardinal owns a personal interest in Condor. The remainder of\nCo...