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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd. is an oil and gas company with operations focused on low decline oil in Western Canada. It is engaged in the acquisition, exploration and production of petroleum and natural gas in the provinces of Alberta, British Columbia, and Saskatchewan. Its operating areas include the Midale, South District, Central District, and North District. It has over 730 million original oils in place (OOIP) and its low decline production of approximately 3,200 barrels of oil equivalent per day (boe/d) is supported by both water and carbon dioxide (CO2) enhanced oil recovery (EOR). Its South District operating area is located east of Calgary in southeastern Alberta and produces medium gravity crude, as well as liquids-rich natural gas. Its Central District operation is located in East Central Alberta, which is focused on producing oil from multiple, large original oil in place (OOIP) pools. Its North area includes Grande Prairie, Clearwater, House Mountain, Mica, and Mitsue properties.


TSX:CJ - Post by User

Comment by JayBankson Apr 14, 2023 8:31am
205 Views
Post# 35394760

RE:RE:RE:If CJ were to be acquired...

RE:RE:RE:If CJ were to be acquired...

Yes is MUCH more likely Cardinal consolidates it's region and consumes other players than they are to be taken by someone else.

With the current company status, any deal to buy us has to be at a very large premium to make sence, due to our near debt free status, large free cashflow, low decline, large reserves, and tax pools...

Our current market cap is $1.2 billion @ $7.71, our price could easily rise in the near future to $10 which would be $1.6B and my personal target is $14 which is about $2.2B (which is likely acheiveable in $100 oil world and/or with more add ons). I haven't even added 20-40% premium to sweeten the deals.

Anyone buying us likely would want to do it sooner than later and I dunno that anyone could do it in a freindly purchase or hostile. I don't know that we would be interested in combining with someone who has larger expenses and a less attractive FCF per produced barrel.

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