Cloudbreak Discovery Share Discussion Threads

[xenawarriorprincess] 01/5/2008 23:18

LoL!

Well spotted DB.

But seriously, for a moment, bearing in mind that Rob Bensh and Cliff West are directors of Condor already - then it may make sense if some form of consolidation is to take place then it would seem appropriate to have Cliff West on the Board of Cardinal also.

I'm not going to do a long-winded post at this time (much) however TSG has previously mentioned the possibility of a reverse takeover of Cardinal/Condor in the relatively near future - I'm not quite sure how that would work, but the documents I posted from the web around last December also mentioned this.

In my last post I mentioned that the Teques field did at one time have 2 producing wells (presumably each) producing up to 442bpd of oil.

This document



suggests (near the bottom of page 3) that Condor's other two fields Quebrada Roja and Toca are also producing (at least in January and February of this year) albeit at low rates of 100 and 1000 barrels - per month presumably. These are the fields they are presently working over.

So it looks like Condor have some production from each of the 3 Colombian fields - with Teques probably being around the 400bpd+ mark.

In my post 3297 I also mentioned that I was mystified as to how RB & Co commanded a fee of $1M+ pa for "advisory" work on Condor, especially as Condor didn't appear to have much cash, or at least only that raised by Bensh himself.

In the December documents (posted 5/12/07 - I think) mention is made of Condor raising $10M to finance its operations - that would tie in with Cardinal having 6.75% of Condor and it being shown in the accounts as being worth $675,000 - although Bensh says it is really worth much more than that.

But $10M isn't really enough to finance drilling and fees of $1M+ pa to Cardinal.

However, the Radial document referred to in post 3297 revealed that they were negotiating for a 37.5% stake in Canaguaro. Supposing that Condor raising $10M paid for a 37.5% or so stake in Canaguaro ie. that other investors had put in about $20M - if Bensh & Co were running this much bigger project then that would provide the funds and justification for charging fees of $1M+ pa.

That wouldn't alter the values put at the beginning of post 3297 as that already would account for the 37.5% stake, but it would help to explain the $1M+ fees ie. Rob Bensh is running a much bigger project than we at first presumed.

Also a search of Canaguaro reveals this



It was the Canaguaro Consortium which applied for the Teques licence (consortium is a word frequently mentioned by Cardinal) what is the betting that Canaguaro Investors are the moneymen behind the Consortium?

I cannot find a direct link between the Canaguaro Consortium and the Canaguaro Investors however this resume suggests various similarities between Canaguaro Investors and Cardinal/Condor

"How would you describe your time at Canaguaro Investors?
Oil & gas investment company based in Delaware. Created as a conduit for U.S. based hedge funds to invest in international exploration, with special emphasis on South America, Kazakhstan and the Ukraine"

Anyway, it's getting a bit late, I will expand on my ideas sometime in the near future.

Regards,

Xena

[david brent] 01/5/2008 22:10

Cardinal Resources plc ("Cardinal" or "the Company"), an independent investing company, is pleased to announce the appointment of Cliff M. West as an executive director with effect from 01 May 2008.

Cliff joined Cardinal in April 2004 as Executive Vice President and Chief Operating Officer. Cliff is an experienced petroleum geologist with over 45 years experience in the oil and gas sector throughout the world.

Robert J. Bensh, the Chairman and CEO of Cardinal, commented;

"I am delighted that Cliff is joining our Board. His wealth of experience in all aspects of exploration, development geology and planning - on a variety of different projects, will be of immense value and brings substantial additional technical expertise to bear on executive decisions ".






Executive decisions like;
'Cliff, chocolate chip or digestives?'

[writz] 14/4/2008 22:35

sg31, that's funny, I thought you were a Societe Generale covered warrant...! So far as Cardinal goes, I like to think we are now on the other side of toast.

[sg31] 13/4/2008 22:25

Writz,"....what's cooking"...Toast.....as in "the company is toast".
Before you ask,yes i am a holder

[writz] 13/4/2008 22:07

Many thanks, Xena - excellent and dogged research. Bensch is certainly a survivor. Let's hope the new website gives us an idea of what's cooking.

[theshareguru] 13/4/2008 14:46

The more I read about cardinal, the more I feel that we may have a chance of
getting back some of our money, columbia and peru are the places to be in
south america, look at gold oil, they could be about to drill a couple of
wells in the next few months which could be company making.

[xenawarriorprincess] 13/4/2008 12:22

Writz,

The Condor deal has always mystified me a bit.

Cardinal is effectively being paid $1M a year via the Subscription and Services Agreement (SSA) for 20% of the working time of Rob Bensh and Cliff West. I can't really see their joint time being worth a total of $5M a year, especially now Cardinal will have shed virtually all their Ukrainian support staff. However the agreement exists.

Also, Cardinal got 6.75% of Condor's assets. We are told in the presentation, they've got a resource of 7.2mb with a NPV of $98M based on oil prices at $41 per barrel. Of course oil is now $110pb and could be heading higher still. Some time ago I found another document on the web indicating that Condor had further potential reserves from these assets of 6.9Mb which could give further value of $93M. So Cardinal potentially has 6.75% of that which is equivalent to a potential $12.8M NPV if it all comes good. We should find out more in about 6 months once the seismic is completed.

Rob Bensh is not only a director of Condor as stated on Cardinal's website, but he is CEO. I posted all the documents showing this late last year on this BB, but they have all now disappeared from the web. So Rob Bensh is effectively running Condor along with Cliff West as head of operations. We don't know whether Rob is paid directly or whether all his salary comes via the SSA – presumably it is all via the SSA, and Cardinal then provides all round office support for Condor.

On Cardinal's website it says that the Condor deal was structured as it was simply because Cardinal did not have the funds themselves to invest directly in Columbia as they had borrowed up to the hilt.

But quite how Cardinal has managed to acquire a possible $12.8M asset, and the services agreement for effectively no outlay, is a mystery. Cardinal also says it wants to increase its 6.75% interest in Condor in the relatively near future.

And how did Rob Bensh become Condors CEO? Maybe the money he raised was sufficient to dilute the original shareholders in Condor to a minority interest, and the new major shareholders insisted he be CEO.

Obviously, there must be more to this than meets the eye, but quite what, I'm not sure. I've mentioned before – why so secretive?

All we've been told about the other investors in Condor is that Hares has 10%, we don't know who holds the other 83%. Presumably some of it is owned by the original investors in Condor's fields, but it seems likely that further funds were raised from other parties (in the region of $10-$15M), and Rob Bensh acted as a facilitator for this, and Cardinal's interest is maybe a fee for that service.

Certainly, the EGM circular suggested that it was Rob Bensh's intention for Cardinal to act as some form of middle man between the owners of investment opportunities, and the suppliers of finance – and Cardinal taking a percentage cut of the resulting vehicle as payment for its services, on top of regular payment by means of a subscription and services agreement. Subsequently once the investment came closer to maturity Cardinal would negotiate an increased stake.

The Orion Simplicity Prospect deal is somewhat different to this, as Cardinal appear to be making a direct investment independently in an early stage development. But Cardinal is fairly cash strapped at the moment and so maybe other parties finance will be brought in at a later date, once more money is required, with Cardinal retaining its original stake.

Orion/Cardinal Hunton intend to acquire 10,000 acres for the Orion Simplicity Prospect in 2008. Cardinal Hunton has paid $500,000 for 50% of the first 2,500 acres. So for the balance another $1.5M presumably will be needed. In total this will use up about 35% of Cardinal available cash of $6M. In addition Cardinal Hunton is committed to paying 50% of 5 wells which are to be drilled. I'm not sure how much it costs to drill wells here (I think they're relatively cheap) but even so that could be another $1-2M. So will Cardinal be spending most of its cash on Hunton?

The Quarterly Update uses an interesting word in relation to the Orion Simplicity Prospect – it calls it "fungible".

Fungibility is "the property of a good or a commodity whose individual units are capable of mutual substitution"

This obviously raises the prospect of Cardinal firming up assets, and then swapping them for other assets in another location. I suspect that once Cardinal Hunton has bought up the required acreage then other investors will be brought on board to help with the drilling costs.

But it is difficult to work out exactly what is going on with Condor. What information we have been given is spread out amongst various documents, and we are always given the bare minimum.

The (now disappeared) documents on the web (late 2007) say that operations began in April 2007 and Condor has some sort of partnership with a local operator "Clean Energy".

We are told (9-1-08) that Condor has an "economic interest" (odd words?) and a "participation agreement" in 3 separate drilling projects in the Middle Magdelana and Llanos Basins. They were then working over 3 wells and undertaking 3D seismic.

Now (7-4-08) we are told the names of the 3 areas contract areas: Canaguaro, Quebrada Roja and Toca which are located in the Middle Magdalena and Llanos Basins, Colombia.

A 3D seismic survey is to be conducted over 47 km2 on the Canaguaro licence area to be completed in the third quarter of 2008.
And we are told one workover has been completed - the reclamation and testing of the Los Teques #1 well on the Conaguaro area.

Scheduled workover programs are underway on Toca and Quebrada Roja licence areas. The results of the phased work program will be announced in due course.

But we have not been told what the results of the drilling were.

Documents on the web (all in Spanish) indicate that the preliminary licence to workover Terques was given to the "Consortio Conaguaro" on 24-10-2006 and a further licence to do actual drilling was given on 6-2-07. It refers to two wells "Pozos de Production Terques y Fortaleza".

Presumably Fortaleza is another of the wells Condor is drilling. Terques may be an old Elf Oil well which was originally drilled in 1978.

A web search of "Canaguaro" reveals another oil company which seemed to be interested in drilling in that area "Radial Energy"



and by coincidence they also seem to be interested in Fortaleza :-

In an announcement dated December 2006 Radial Energy announced

"In related news from Colombia, Management wishes to announce it has been granted exclusive rights, through January 25, 2007, to continue its negotiations on the Canaguaro Block. The Company was granted the extension in order to confirm the near term availability of rigs and equipment to perform the planned re-entry and development drilling required under the terms of the concession.
As reported recently, Management is negotiating for a proposed 20-37.5% working interest in the 24,103 acre block located in the Llanos basin, where two wells were previously tested discovering an oil deposit in the Eocene Mirador formation, with flow rates up to 462 barrels of oil per day of 22-24 API crude. The structure is identified as the Fortaleza field and is located in one of the most prolific hydrocarbon basins in the country where several giant fields have been discovered and developed near the license area including Cusiana, Cupiagua and Santiago fields, among others."

Maybe Radial lost out and it was Condor that actually got the block. Recent searches of Radial seem to show it no longer has any interest in Canaguaro and has almost run out of money – its share price having collapsed recently.

It looks like Bensh/Condor came along with the required money – and acquired the licences together with some other licences, instead of Radial Energy having them.

As always, it is difficult to find definite and complete information, hopefully we will have more information when the website is updated in May.

Regards,

Xena

[writz] 12/4/2008 22:51

Xena, in your view what does Bensch actually DO for Condor? What services command the kind of retainer Cardinal is getting - services which could be offered to other clients? Is he acting as a broker for farm-ins?

[sg31] 12/4/2008 20:09

I don't think he could organise a binge drinking session in an alcoholic beverage manufacturing facility.

[xenawarriorprincess] 12/4/2008 12:32

Just noticed an Oil Barrel article on the JKX thread regarding cash strapped juniors.

The relevance to Cardinal is that the credit crunch which presently exists (and may well get even worse) could give Rob Bensh the opening he needs to rebuild Cardinal. Cardinal may have been in part one of the earliest victims of the credit crunch but as its effects are increasingly felt throughout the junior oil sector, Rob Bensh could be able to turn it to Cardinal's advantage.

This is taken from the circular dated 27th November 2007 sent to shareholders before the last EGM


"The Company intends to approach companies and undertake organization of corporate entities for projects where, similar to its role in Condor, the Company is able to negotiate an equity interest and a services agreement providing for cash revenues for its sourcing of investment opportunities and a role in negotiating, structuring and financing the transaction. The Company believes that it can accomplish this outcome, as it did with Condor, utilizing under US$1 million in capital and corporate resources to contractually lock up a transaction and then build a self-capitalized business around a particular transaction.

This strategy would allow the Company to initiate operations and finance projects on a limited/non-recourse basis to the Company and, as production and cash flows begin to increase, to take an increased interest in the projects by negotiation with the financing parties involved."





"08.04.2008
Aurelian Oil & Gas Bags JKX As Farm-In Partner In Slovakia
It became very clear at last week's oilbarrel.com conference that oil juniors, short on cash and finding few friends in the credit-squeezed banking community, must increasingly rely on industry resources to drill up their acreage. The farm-out market is the main mechanism by which small companies divvy up the costs of new seismic and drilling, reducing their cost exposure to a manageable amount and spreading the risk among multiple parties. These commercial deals can take time to finalise, however: think explorers in the Falkland Islands or Northern Petroleum in Italy, where investors are anxious to see possible multi-billion barrel resources drilled but are frustrated at the slow pace of farm-out activity.

Given the importance of farm-out deals, they are now newsworthy events. This week Aurelian Oil & Gas was pleased to announce it has bagged JKX Oil & Gas as a 25 per cent partner in its Svidnik, Medzilaborce and Snina licences in Slovakia. Aurelian will retain the remaining 75 per cent and operatorship of the licences, which it was awarded in August 2006.

In return for the 25 per cent stake, JKX will pay 25 per cent of the historical costs borne by Aurelian (reckoned to be about €300,000) and fund the first €1.6 million of a €3.2 million 238 km 2D seismic programme planned for this summer. "



Cardinal obviously only has fairly limited funds itself, probably about $5.5M or thereabouts at present, but Hares and Kuwait do have access to substantial funds and Cardinal could effectively act as middleman linking these (and other) sources of funding to cash strapped junior players - maybe that is what happened with Condor. The JKX deal suggests that decent sized interests can presently be acquired for little initial outlay.

And Rob Bensh does seem to have extensive links within the O&G industry.

This is taken from a SEC filing by a company called "Foothills Resources Inc." outlining their various interests including in the Oklahoma Hunton Formation - in which Cardinal has now decided to explore. And to my surprise one of Foothill's Resources directors David A. Melman was a director and Chief Corporate Officer of one Cardinal Resources plc between 1998 and 2000



"Oklahoma

The Anadarko Basin in western Oklahoma and the Texas panhandle is one of the
most prolific oil and natural gas producing basins in the United States. We
believe that much promise remains in the deeper portion of the basin that is
characterized by stratigraphic traps in the Pennsylvanian Morrow formation and
structural traps in the Ordovician Hunton formation, two of the formations
targeted by the Company."




Rob Bensh certainly has a lot to prove, bearing in mind the situation Cardinal currently finds itself in - however, the circumstances whereby junior oilers are short of funds despite a record oil price, and his various financial and oil contacts could provide the opportunity he needs.

Regards,

Xena

[david brent] 08/4/2008 16:16

nice post nat, oops sorry xena.......only joshing rob.

no seriously, all if's n' buts n' pots n' pans as usual with cdl but a nice assessment nonetheless.

knowing our luck as holders, the link to nak nadra has probably something to do with owing them money!

[writz] 08/4/2008 07:15

Thanks, Xena. As ever, we are peering into the fog!

[xenawarriorprincess] 07/4/2008 20:53

Yep, those food stamps certainly come in handy, the only problem is they don't seem to accept them in Harrods :-)

Well, I'm not sure how good I am on "feel good pep talks", but for what it is worth here is my take on matters.


In terms of present assets it looks like we've got the following:

Cash - we had $6.1M+ following the disposal of Ukraine, that equates to about 2.7p, perhaps slightly more, but we've not been told, for whatever reason how much more, so maybe not much more.

Income - $1M+ per annum from the services agreement with Condor. That was on the basis that Rob Bensh and Cliff West would each spend 4 days per month on Condor business, anything in excess of that could be billed to Condor. However as Rob Bensh is CEO(!) of Condor I'm not sure how that would work out at present - however the $1M per annum income must have a value, and I'd put that for the sake of argument at $2M (could well be more - depends on what you would pay to buy $1Mpa income), so about another 1p per share there.

Condor, we've got 6.7% - but of what? The January presentation suggested that Condor had a NPV of about $98M of 3P reserves at an oil price of $41pb and oil is well over twice that now. At $98M thats worth another 3p. What discount do you give to 3P reserves when trying to value the share? I'm not sure but say that could be worth another 1.5p. There was also a hint that we may have some production, but I'll discount that for now.

(Incidentally the January presentation suggested that 3D seismic would be completed this quarter, whereas now it looks like being the next quarter. And I also found something a while ago suggesting Condor has other assets worth about another $80M NPV - I did post it here sometime November/December, but a Google search now comes up with nothing).

So you've got 2.7p+1p+1.5p = 5.2p. JP Jenkins shows the shares now at 3p.


As for todays announcement I'll comment as follows;


Marcus Stanton - I noticed that he'd disappeared from the directors list a couple of months ago - it is understandable, if a little disappointing that he has gone.


Columbia - we've got a bit more information, delayed seismic etc - but not much - what about those 3 workovers for instance? And also this

"As previously announced, Condor has an economic interest in future production from three contract areas: Canaguaro, Quebrada Roja and Toca which are located in the Middle Magdalena and Llanos Basins, Colombia"

well this is the first time we've been told specifically where Condors area of interest is - Canaguaro, Quebrada Roja and Toca - have never been mentioned in any announcements previously.

This is also interesting, and as always never the full story -

"The scheduled workover programs are underway on Toca and Quebrada Roja licence areas. The results of the phased work program will be announced in due course."

It does make me wonder - why so secretive?


Orion - Rob Bensh has spent some $500K from the $6.1M on acquiring an interest in Oklahoma - a great musical, by the way.

This seems to be Orion



and they are interested in oil, gas and coal bed methane - the latter possibly being useful if RB ever decides to go back into Ukraine (more of which later), and a quick Google search will reveal that they are pretty active drillers.

This is a bit of information on the Hunton Formation and it looks pretty interesting







A couple of things concern me generally however - one is the lack of complete information, for example just how much money did we get out of Ukraine exactly, who are the other investors in Condor, and how much did they put in etc (I could go on...), and the second is the prospect of a dilutative fundraising at a low share price. We certainly need to raise some money, as $6M won't last long, although I think RB can't spend more than $1M on any one project without an EGM. I'd like to see more news, and further details of Condor and Orion prior to any fund raising so that the price paid by prospective investors accurately reflects the true worth of Cardinal....whatever that is.

And I am looking forward to the updated website in May.

And finally, whatever RB and Cardinal, or even the man on the moon says, I still think there is some link (or will be a future link) with Ukraine.

If you click on Cardinal's website, and then click on management, the management page will appear. RB, Natalia etc. With the mouse hover over the centre of the bottom of the page - a small indistinct box appears - click on the box - and the message "Nak Nadra" appears. What has Nak Nadra ever had to do with Cardinal - nothing so far as I'm aware. Why have a link from Cardinal's management page to Nak Nadra - a deal not yet consummated? a link left in by mistake? Who knows?

What's the betting the box and link disappears pretty sharpish....

Regards,

Xena

[penrynner] 07/4/2008 17:16

Xena is currently applying for food stamps....

[david brent] 07/4/2008 17:15

will it be relisted again and if so on the aim casino? we need xena for a feel good pep talk.

[omellete] 07/4/2008 16:01

That sounds OK - now when can I have my 7 pence back!

[tolstoi] 07/4/2008 15:56

$6.1M/114554108=
between 2.5 - 3.0p per share.

Assuming it hasn't already been spent on salaries and other G&A.

Is that correct?

[shirelyshare] 07/4/2008 15:47

CARDINAL RESOURCES PLC PROVIDES A QUARTERLY UPDATE



LONDON - Monday, 7 April 2008



Cardinal Resources plc ("Cardinal" or "the Company"), an independent investing company, today provides a quarterly update.





Completion of the transaction:



Following the approval of Cardinal's shareholders (the "Shareholders") received on 13 December 2007 and approval of the Anti-Monopoly Committee of Ukraine on 21 December 2007, Cardinal completed the transaction to sell its Ukrainian oil & gas assets (the "Disposal") as originally communicated to Shareholders on 30 October 2007.



The amount of cash retained by the Company for the benefit of the Shareholders exceeded the earlier estimation of US$6.1 million as a result of an aggregate reduction to contractually agreed payments which executives and certain advisers agreed to accept.


Following the Disposal, Cardinal's material assets are the net proceeds from the Disposal, its 6.75% shareholding in Condor Exploration, Inc ("Condor") and an administrative and technical services agreement with Condor pursuant to which it is entitled to a minimum of US$1 million per year in revenues.





Resignation of Non-Executive Director:



Following the Disposal and consequent fundamental change of the business, Marcus J G Stanton elected to resign from the Board of Cardinal as non-executive director and Chairman of the Audit Committee with effect from 7 January 2008.



"I would like to thank Marcus for his support of the business and invaluable input in helping guide the Company though the critical phase of Cardinal's existence. We wish Marcus every success in his other ventures," said Chairman and CEO of Cardinal, Robert J Bensh.



Misbah Al Droubi was appointed as the second member of the Audit and Remuneration committees and David F Philips was elected as Chairman of the Audit and Remuneration committees.





Shareholding Transfer:



Hares Group Limited, a major shareholder of Cardinal that holds an interest in 21,949,364 Ordinary Shares, representing 19.2% of the issued share capital of the Company has notified Cardinal that as of 7 December 2007 all such Ordinary Shares were transferred to its subsidiary company Hares Group Energy Limited.





Orion Simplicity Prospect:



Cardinal has entered into a participation agreement with Orion Exploration LLC ("Orion") to participate with a 50% working interest in Orion's Simplicity Prospect (the "Orion Deal") to acquire oil & gas leases covering up to 10,000 net acres in Lincoln and Okfuskee Counties, Oklahoma. Cardinal has made an initial investment of US$ 500,000 for a working share of 2,500 acres already acquired by Orion with additional capital required over the course of 2008 for acquisition of additional acreage as called for in the work program.

The parties have committed to participate in, and prepay their proportional shares of the cash of the first five test wells which include four multi-lateral horizontal Hunton wells and one water disposal well. The initial capital requirements give Cardinal a fungible ownership in oil and gas leasehold in one of the most active plays in North America.



Orion will be an operator of the project and is a local "prospect generator" with a highly experienced technical team and proven track record of executing and operating similar projects in the region.



The Hunton formation is an increasingly popular play in Oklahoma attracting a large number of independent exploration and production companies of all sizes. Cardinal sees significant growth opportunities in midcontinent and permian basins.



A new 100% subsidiary of Cardinal, Cardinal Hunton LLC, incorporated in Oklahoma, USA, was formed for the purpose of facilitating the Simplicity transaction and other potential transactions in Oklahoma region.





Condor Exploration Inc:



Operational Update:



As previously announced, Condor has an economic interest in future production from three contract areas: Canaguaro, Quebrada Roja and Toca which are located in the Middle Magdalena and Llanos Basins, Colombia. Currently Condor is in the process of completing the environmental, social work and land permitting required to conduct a 3D seismic survey over 47 km2 on the Canaguaro licence area. The actual data acquisition is scheduled to start immediately after the permitting is completed. The data interpretation is expected to be completed in the third quarter of 2008.



The acquisition of a 3D seismic survey over the proposed area will allow Condor to fulfill work program obligations and estimate the size of oil accumulation identified on the Canaguaro licence area as indicated by the reclamation and testing of the Los Teques #1 well.



The scheduled workover programs are underway on Toca and Quebrada Roja licence areas. The results of the phased workprogram will be announced in due course.



###



For further information please contact:

Cardinal Resources

Charles Green / Natalia Egorova

[phone]

[e-mail]



Notes to Editor



Cardinal Resources plc is an independent company investing in oil and gas exploration and production projects and companies with a view to provide expertise, management support and, subject to further fundraising, capitalise projects and companies as appropriate.

[david brent] 07/4/2008 13:20

tsg, could you explain what a reverse takeover is and what it will mean for cdl and how it will be beneficial?, apologies for my ignorance.

[theshareguru] 07/4/2008 09:33

cardinal will be the vehicle for a reverse takeover in the very near future
I think, I wouldn't sell at 3.25p

[david brent] 03/4/2008 09:26

'The Reduction has not in any way affected the Ordinary Shares currently in issue and has not resulted in any reduction in the net assets of the Company.'

IF YOU COULDN'T LAUGH YOU'D CRY.

WHAT ASSETS?..........FFS!

[shirelyshare] 03/4/2008 06:19

REDUCTION OF CAPITAL



LONDON - Wednesday, 2 April 2008



Cardinal Resources plc ("Cardinal" or "the Company"), an independent investing company, today announces Court approval of the reduction of the Company's share capital (the "Reduction").

Following the sub-division of Cardinal's ordinary shares ("Ordinary Shares") as described in the circular to Shareholders dated 6 November 2007 and approved by the Shareholders on 30 November 2007, the Company made an application to the Court to effect the Reduction by the cancellation of the deferred shares created pursuant to the sub-division. The final hearing, at which the Court approved the Reduction, was held on 19 March 2008.



Following the Reduction the Company has an authorised share capital of £78,234,719.48 and an issued share capital of £1,145,541.08 of 114,554,108 Ordinary Shares of 1p each.



The Reduction has not in any way affected the Ordinary Shares currently in issue and has not resulted in any reduction in the net assets of the Company.



The existing share certificates representing existing Ordinary Shares will continue to be valid following the Reduction.



The Reduction gives the Company flexibility to raise further equity funding when required.



###



For further information please contact:



Cardinal Resources

Charles Green / Natalia Egorova

[phone]

[e-mail]



Notes to Editor



Cardinal Resources plc is an independent company investing in oil and gas exploration and production projects and companies with a view to provide expertise, management support and, subject to further fundraising, capitalise projects and companies as appropriate.