October 17, 2005 10:42 ET

Cardinal Resources plc Allots Ordinary Shares in Accordance With the Anti-Dilution Right

LONDON -- (MARKET WIRE) -- October 17, 2005 -- Cardinal Resources plc (AIM: CDL), an independent oil and gas exploration and production company, today announces that it has allotted Ordinary Shares in accordance with the Anti-Dilution Right approved by shareholders at the Company's AGM on 25th July 2005.

Based on the terms of the Anti-Dilution Right, a total of 4,807,288 Ordinary Shares (5.5% of the existing share capital) will be issued to seven shareholders who invested as part of the Company's original private placement in 2004. The Anti-Dilution Right was granted to incentivise the placement shareholders to subscribe for additional shares at the time of the Company's admission to AIM and to assist in maintaining favourable relations between Cardinal and its shareholders. Under the Anti-Dilution Right, additional shares are allotted because the agreed target price for Cardinal's Ordinary Shares over the previous fifteen consecutive trading days was not met.

These new shares are subject to orderly market provisions until 15th January 2006.

Cardinal Resources plc

Cardinal Resources plc is an independent oil and gas exploration and production 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 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.

This information is provided by RNS
The company news service from the London Stock Exchange

Contact Information

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    Kate Spiro
    Investor Relations
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