Cardinal Resources Eyes Share Capital Increase, Completes Construction of Gas Gathering Facility

According to a recent announcement, Cardinal Resources (CDL LN), a junior London-based oil & gas company with core assets in Ukraine, plans to conduct an additional share issue. The issue is supposed to prop up the company’s working capital, which has been strained by a delay in JAA gas sales, higher than expected operating cost and CapEx. In separate news, Cardinal said its 19.1% shareholder, Hares Group, confirmed that it can provide the company with a USD 5 mln short-term loan. Additionally, Cardinal Resources announced it has completed construction of a gas gathering facility at its BC field in Poltava region that will enable the company to sell gas instead of condensate. The BC licence is 100% owned by Cardinal, which means that gas sales from the field will be out of price caps established by the government. In the meantime, the release said the company revised down its projection for daily flow from the BC wells from 3.0 to 2.2 boepd, while higher flow still can be achieved if a second compressor is installed by the end of the year.