Cloudbreak Regulatory News (CDL)

7 Nov 2006 07:00

Cardinal Resources plc06 November 2006 CARDINAL RESOURCES PLC Response to Release LONDON - Monday, 6 November 2006 Cardinal Resources plc, (AIM:CDL) ("Cardinal" or "the Company"), an independentoil and gas exploration and production company operating in Ukraine, today notesthe announcement made by QVT Financial LLP (QVT) on 3rd November 2006. The Board takes shareholder's views seriously and gives them appropriate andtimely consideration. The Company's management team are available at all timesto meet with shareholders and explain publicly available information and listento their views. The Company believes QVT's assertions are not based on a full understanding ofthe facts as they pertain to accessing capital and building the infrastructureto operate and develop the Company's asset base in Ukraine. Commenting on today's release, Robert J. Bensh, Chairman and Chief ExecutiveOfficer of Cardinal said: "We look forward to meeting with QVT's advisers in the near future to resolvethe misunderstandings we believe QVT have about Cardinal. We have recentlyreported significant progress in developing our Rudis properties in Ukraine andwe remain focused on meeting our incremental production objective by year end2007." ### For further information please contact: Cardinal Resources Parkgreen CommunicationsCharles Green / Franziska Stahlknecht Justine Howarth / Victoria Thomas+44 (0) 20 7936 5250 +44 (0) 20 7493 3713investor.relations@cardinal-uk.com victoria.thomas@parkgreenmedia.com Notes to Editor Cardinal Resources plcCardinal Resources plc is an independent oil and gas company engaged in theacquisition, development, production and exploration of oil and natural gasproperties in Ukraine. Cardinal is an experienced operator in the countryfocused on expanding its existing operations through the farm-in or acquisitionof additional upstream oil and gas assets that can be further developed throughthe application of modern technology and expertise. Cardinal's main assets are: Rudivsko-Chernovozavodske (RC) FieldRudivsko-Chernovozavodske is a large under-developed gas field (1.54 TCForiginal gas in place), located in the Dnieper-Donets basin, 200km east of Kievin the Poltava Oblast. Cardinal has a Joint Activity Agreement (JAA) with asubsidiary of Ukrnafta for production and further development in which Cardinalholds a 14.9% net profit interest. Bytkiv-Babchenske (Bytkiv) FieldBytkiv-Babchenske is an oil field, located in the Carpathian fold belt, 45kmsouth-west of Ivano-Frankivsk in the Nadvirna Oblast. Cardinal has a 45%interest through UkrCarpatOil, a Joint Venture (JV) with Ukrnafta, to operateand develop the field. Plus the following assets which were acquired as part of the Rudis DrillingCompany transaction in 2005: Bilousivsko-Chornukhinska (BC) LicenceBilousivsko-Chornukhinska is a producing gas-condensate licence in theDnieper-Donets basin, 100% owned and operated by Cardinal. North Yablunivska (NY) LicenceNorth Yablunivska is a producing gas-condensate licence in the Dnieper-Donetsbasin, 100% owned by Cardinal and operated under the JAA. For four wells on thelicence covered by JAA 429, Cardinal's interest is only 50% in each such well. Dubrivska (DB) LicenceCardinal has drilled an exploration well as part of the JAA with Ukrgazvydobuvannya.Ukrgazvydobuvannya JAA #429Cardinal has a 50% percent interest in a JAA with Ukrgazvydobuvannya whichcovers certain wells on the NY licence area and one well in the Bilskie field. This release may contain certain forward-looking statements. These statementsrelate to future events or future performance and reflect management'sexpectations regarding Cardinal's growth, results of operations, performance andbusiness prospects and opportunities. Such forward-looking statements reflectmanagement's current beliefs, are based on information currently available tomanagement and are based on reasonable assumptions as of this date. Noassurance, however, can be given that the expectations will be achieved. Anumber of factors could cause actual results to differ materially from theprojections, anticipated results or other expectations expressed in thisrelease. While Cardinal makes these forward-looking statements in good faith,neither Cardinal, nor its directors and management, can guarantee that theanticipated future results will be achieved. --------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange