Cardinal Resources plc
06 February 2007
LONDON - 6 February 2007
Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent
oil and gas production and exploration company operating in Ukraine, today
announces significant general and administrative ('G&A') cost reductions.
The costs are expected to reduce by $1.5 to $2.0 million in 2007 from actual G&A
incurred in 2006, largely due to the following factors:
• The hiring of technical and operating in-country personnel for Ukraine
operations was completed last year. One-off hiring costs are not
expected to be repeated. The Company now has an integrated Western and
Ukrainian operations and production team in place, with an average of
20 years of experience operating in the region to develop the Company's
licence areas.
• The Company has reduced the number of full-time executives in London
and Houston and outsourced other non-core activities.
• The Company incurred legal and government affairs costs associated with
the RC re-instatement in 2006 that are not expected to be repeated in
2007.
The Company will continue to rationalise G&A as well as the operational cost
structure of the business.
The Company's focus will continue to be on its development efforts on its 100%
owned and operated licence areas and the completion of its gas processing
facility in order to reach a production run rate of 3,000 boepd by year end.
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Cliff West, Executive Vice President and Chief Operating Officer of Cardinal
(Member of the American Association of Petroleum Geologists - Certified
Petroleum Geologist # 1563) is the qualified person that has reviewed and
approved the technical information within this press announcement.
This release may contain certain forward-looking statements. These statements
relate to future events or future performance and reflect management's
expectations regarding Cardinal's growth, results of operations, performance and
business prospects and opportunities. Such forward-looking statements reflect
management's current beliefs, are based on information currently available to
management and are based on reasonable assumptions as of this date. No
assurance, however, can be given that the expectations will be achieved. A
number of factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in this
release. While Cardinal makes these forward-looking statements in good faith,
neither Cardinal, nor its directors and management, can guarantee that the
anticipated future results will be achieved.
Definition: boepd: barrels of oil equivalent per day.
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For further information please contact:
Cardinal Resources Brunswick Group
Charles Green / Natalia Egorova Paul Scott
+44 20 7936 5250 +44 20 7404 5959
investor.relations@cardinal-uk.com cardinal@brunswickgroup.com
Nominated Adviser
Nabarro Wells & Co. Limited
John Wilkes / Marc Cramsie
+44 20 7710 7400
cardinal@nabarro-wells.co.uk
Notes to Editor
Cardinal Resources plc
Cardinal Resources plc is an independent oil and gas production and exploration
company with assets in Ukraine. Cardinal is an experienced operator in the
country focused on expanding its existing operations through the farm-in or
acquisition of additional upstream oil and gas assets that can be further
developed through the application of modern technology and expertise.
This information is provided by RNS
The company news service from the London Stock Exchange