Cardinal Resources Plc, London, (AIM: CDL) has entered into an agreement with Hares Group Ltd. to acquire Ukraine-based Rudis Drilling Co. for US$14.8 million. Rudis' assets include three oil and gas licenses and a 50% working interest in a joint activity agreement with Ukrgazvydobuvannya, a subsidiary of Naftogaz Ukraine, where Rudis is operator. Rudis' properties are approximately 40 kilometers from Cardinal's existing wells in the Rudivsko-Chernovozavodske Field in eastern Ukraine. The company has current net average production of 500 barrels of oil equivalent per day and estimated reserves of 9.1 million barrels of oil equivalent. This transaction is expected to increase Cardinal's reserves to 27.5 million barrels of oil equivalent. Cardinal will fund the acquisition through the issuance of 21.9 million Cardinal shares and US$6 million in cash. The acquisition is expected to close by the end of November.