For comparison CJ has a billion market cap and produces 21,872 BBLs /day:
Cardinal Energy Ltd. has released its operating and financial results for the third quarter ended Sept. 30, 2023, and has appointed a new director, established a thermal operating unit and released its 2024 budget.
Financial and operating highlights from the third quarter of 2023:
- Third quarter 2023 adjusted funds flow of $81.2-million (51 cents per share) was 45 per cent higher than the prior quarter due to higher commodity prices, increased production and lower operating costs.
- Average production volumes in the third quarter of 2023 of 21,872 barrels of oil equivalent per day were 4 per cent higher than the second quarter of 2023 as the company recovered from the impact of the Northern Alberta forest fires experienced in the second quarter of 2023.
- Net debt as at Sept. 30, 2023, decreased 19 per cent, over the balance at the end of the second quarter of 2023, to $62.0-million, a reduction of $14.3-million in the third quarter of 2023.
- Net debt to adjusted funds flow ratio decreased to 0.2 times in the third quarter of 2023.
-------------------------------------------------------------------------------------------------------------------------------------------
And ROK is only $60 million market cap with 21% of CJ production but only 5% of relative market cap
2023 Operational Highlights
Record Average Production of 4,650 boepd in December: Daily average production in December of 4,650 boepd (60% liquids), which exceeded the Company's 2023 exit production target range of 4,300 - 4,500 boepd and represents a 35% increase in production compared to December 2022 daily average;
Organically Increased Production by Over 50% in 6-Months: Following two asset transactions, previously announced on January 24, 2023 and March 23, 2023, the Company grew from 2,950 boepd to 4,650 boepd in 6-months;
Core Area Drilling Inventory Growth: Added 10 proved drilling locations in core operating areas in Southeast Saskatchewan after successful Frobisher results across multiple fields;
Drilled the #1 Daily Average Oil Well in Saskatchewan in December: The Company's 6-25 Glen Ewen Frobisher well averaged 392 bopd11 in the month of December;
Operating Cost Reduction: With a focus on operational efficiencies in Q4 2023, the Company reduced total operating cost per boe by approximately 20% compared to Q3 2023, resulting in operating costs below $30/boe in Q4 2023;Exceeded Q4 2024 Funds from Operations forecast: Estimated10 Funds from Operations of $10 million in Q4 2023, exceeding the Company's forecast by 16% despite weaker commodity pricing;
Net Debt: The Company will exit 2023 with an estimated10 Net Debt of $14.5 million (or Adjusted Net Debt of $18.5 million). This represents a 59%, or $20.8 million, reduction in Net Debt year over year; and
Commitment to ESG: The Company increased its original asset retirement obligation budget and invested approximately $2.3 million to reduce environmental liabilities which represents 10% of its estimated inactive asset retirement obligation.