Operational Update

Cardinal Resources plc
13 February 2007


LONDON - 13, February 2007


Cardinal Resources plc (AIM: CDL) ('Cardinal' or 'the Company'), an independent
oil and gas production and exploration company operating in Ukraine, today
provides an update on development drilling operations and production.

PRODUCTION PROFILE

The Company expects net production to increase from approximately 800 BOEPD in
December 2006 to a run rate of approximately 3,000 BOEPD by the end of 2007.

The table set out below summarises the Company's expected production profile for
the second half of 2007 and is based on the following assumptions:

• current production rates of approximately 800 BOEPD from existing producing
  wells continue at the same rate; and,
• successful completion of Cardinal's new gas processing plant and tie-in to
  existing Ukrainian pipelines.

In addition, this is based upon:

• expected production rates from wells ready to tie-in; (see Note i); and,
• the current drilling programme continuing to progress according to plan. (see
  Note ii)

Projected Net Production Rate (31/12/07)                          BOEPD (000's)
----------------------------------------                          ------------
December 2006 run rate                                            0.8
Ready to tie-in                                                   1.4
Wells drilling / To be drilled                                    0.8
----------------------------------------                          ------------
Expected December 2007 run rate                                   3.0

At present, the Company has three workover and 9 development locations
identified for drilling immediately in the Bilousivsko-Chornukhinska (BC) and
North Yablunivska (NY) licence areas which Cardinal owns and operates with a
100% working interest. In addition, Cardinal is conducting two 3-D seismic
surveys covering a total of 100 km sq on the BC and NY licence areas. The
Company anticipates that the current seismic programme together with the
previously acquired Dubrivska (DB) 25 km sq 3-D seismic survey will
substantially increase the quality of known locations and increase the
probability of an additional 10-16 drilling locations.

JAA GAS SALES

In January 2007, a resolution of The Cabinet of Ministers of Ukraine amended an
existing regulation on fixed pricing of gas sales by Naftogaz, Ukrnafta, and Nak
Nadra that extended the scope of the regulation to potentially include Joint
Activity Agreements with those entities. Cardinal has been informed twice by the
Ministry of Fuel and Energy that its net portion of JAA production will not be
affected. The Company is still seeking clarification on the actual
implementation of this resolution and, as a precaution, has elected with its
partner Ukrnafta to transfer all JAA associated gas production to storage. At
present this represents approximately 20% of Cardinal's oil and gas production
by volume.

Cardinal expects no material impact or re-classification of reserves reported in
its 15 May 2006 reserve report, although the net present value of reserves could
be affected if fixed prices were to be applied. Sales, profits and cash flow
could be adversely affected if sales are not resumed or stocks remain unsold at
free market prices before the current quarter's profit distribution becomes due.

Cardinal will continue to concentrate its present development efforts and
current production increase programme on licences that it owns 100% and
operates.

LICENCES EXTENDED ON BC, NY AND DB

The Bilousivsko-Chornukhinska (BC), North Yablunivska (NY), and Dubrivska (DB)
Exploration and Pilot Production licences were extended for a five year period
from November 2006 until November 2011. Cardinal operates and owns a 100%
interest in the BC, NY and the DB licences. Four wells in the NY license area
are covered by the Joint Activity Agreement (JAA) #429 with Ukraz and Cardinal
has a 50% interest in these wells.

BILOUSIVSKO-CHORNUKHINSKA (BC) LICENCE AREA

In October 2006 Cardinal announced the completion of the Bilousivsko #3A well.
The well flow-tested at a calculated rate of 4.05 million cubic feet of gas per
day ('MMcfg/d') on a 9mm choke, or 675 barrels of oil equivalent per day
(BOEPD). The BC #3A well is ready to be tied into the BC gas gathering and
separation facility upon its completion.

Construction activities on the gas gathering and separation facility continue
and the commencement of operations is expected during the second quarter of
2007, as originally projected.

The well design for the Bilousivsko #13A well has been completed and
preparations for drilling are due to start upon finalisation of land
allocations, expected in this quarter. The Company expects to have suitable
equipment in place in the second half of 2007.

With the installation of plunger lift equipment on the BC #110, #111 and #13
wells, the workovers will be successfully completed and ready to tie into the
gas gathering and separation facility on its completion. The installation of
plunger lift equipment for the #13 and #111 wells is underway and will be
completed by mid March 2007. The Company is awaiting delivery of the equipment
for the #110 well which is expected within the next two months.

The workover of BC wells #7, #17, and #9 are in the final planning stage with
outstanding land use agreements expected to clear in the first quarter of 2007,
and will be completed sequentially as the two workover rigs complete the plunger
lift installations.

The planned drilling programme on the BC #116A well will be resumed after the
completion of interpretation of the 3-D seismic survey over approximately 65 km
sq of the BC licence area. The survey is scheduled to begin in April 2007 with
the field work and processing completed in four months. The results of the
survey will improve both the delineation of reservoirs associated with existing
planned locations, including the #116A, and aid the identification of additional
potential drilling locations in the licence area.

NORTH YABLUNIVSKA (NY) LICENCE AREA

The NY #4 well is suspended at 1,800 meters inside casing. The well now awaits
completion of a 35 km sq 3-D seismic survey over the NY licence area. The 3-D
survey will confirm the bottom hole location for the #4 well, further delineate
six existing 2P locations and likely identify additional potential drilling
locations. The survey is expected to commence in the second half of 2007 and
take approximately four months to complete. The workover on the NY #203 well is
in process within JAA #429.

DUBRIVSKA (DB) LICENCE

A 25 km sq 3-D seismic survey, which was completed in the fourth quarter, has
already identified one side track opportunity and two additional potential well
locations in the area. Drilling operations are expected to begin in 2008.

RC REINSTATEMENT

Cardinal, through a subsidiary, currently holds a 14.9% interest in the
Rudivsko-Chernovozavodske ('RC') Field pursuant to a Joint Activity Agreement
(the 'RC Field JAA') with JSC UkrnaftaUkrnafta. Cardinal is seeking to increase
that interest back up to 45% by increasing its investment in the Joint Activity
of the RC Field and settling the capital expenditure account under the RC Field
JAA (the 'RC reinstatement'). This RC reinstatement would bring the Company back
closer to the original 50/50 investment balance between the parties in the Joint
Activity.

Ukrnafta has previously acknowledged that this right to RC reinstatement exists
under the RC Field JAA, and Cardinal has been pursuing its right to undertake
such RC reinstatement, and has access to the additional capital necessary to
fund such reinstatement. However, implementation of the RC reinstatement has
been hampered by upheavals in the political situation in Ukraine, and by various
shifts in position on this issue within Ukranafta.

Cardinal continues to press for consummation of the RC reinstatement, and is
exploring all legal avenues available to the Company to ensure that its
contractual right to implement such RC reinstatement is respected.

Cliff West, Executive Vice President and Chief Operating Officer of Cardinal
(Member of the American Association of Petroleum Geologists - Certified
Petroleum Geologist # 1563) is the qualified person that has reviewed and
approved the technical information within this press announcement.

Notes to production profile expectation:

Production estimates are based upon the assessment of:

Note i: recent test results of wells ready to tie into production; and
Note ii: historic records of test results from the early 1980's for workover
wells drilling and or to be drilled.

A number of factors, such as technical difficulties in completion and or tie-in
could cause actual production to differ materially from current expectations.

Glossary of Terms

BOEPD                               Barrels of oil equivalent per day
MMcfg/d                             Million cubic feet of gas per day
MMboe                               Million barrels of oil equivalent

For further information please contact:

Cardinal Resources Brunswick
Charles Green / Natalia Egorova       Paul Scott
[phone]                  [phone]
[e-mail]    [e-mail]

Nominated Adviser
Nabarro Wells & Co. Limited
John Wilkes / Marc Cramsie
[phone]
[e-mail]


Notes to Editor

Cardinal Resources plc

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






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