- 20 wells in production and two workovers completed, with a further four workovers currently in progress
A summary of the work to date (April 15th - November 30, 2005) is detailed below:
RC Field Bytkiv Field Rudis Assets TOTAL Workovers completed 1 1 0 2 Workovers in progress 1 1 2 4 Workovers pending 2 10 2 14 New wells currently drilling 0 0 1 1 New drilling to commence Q1 0 1 2 3 Flowlines in progress N/A N/A 1 1 Producing wells 5 12 3 20
Following the financing by Silverpoint Finance in December 2005 of US$38 million, Cardinal is currently in the process of negotiating the reinstatement of its net profit interest in the RC Field from 14.9% to 45%.
Robert J. Bensh, Chairman and Chief Executive Officer of Cardinal said, "With the necessary funds now in place, our first priority for 2006 is to restore our position in the RC Field which will provide a considerable boost to reserves and production, and significantly increase Cardinal's footprint in Ukraine."
Commenting on the Ukraine gas price he continued, "I maintain my view, based on the trends we have experienced so far, that domestic gas prices will continue to increase, with positive implications for Cardinal. Since the IPO in April 2005 we have already experienced a 30% rise in the average sales price of our gas.
"In light of the recent disruption in gas supplies from Russia and the increase in imported gas prices, there is an even more pressing need now for Ukraine to attract Western technology and increase foreign direct investment in the energy sector to increase domestic production. Cardinal's existing presence in the country means that it is well positioned to take advantage of these opportunities and pursue further acquisitions and farm-ins with local entities."
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