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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd. is a Canadian oil and natural gas company with operations focused on low decline oil in Western Canada. The Company is engaged in the acquisition, development, optimization and production of crude oil 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. Its Midale operating area of over 730 million barrels of original oil in place (OOIP) and its low decline in production of 3,200 barrels of oil equivalent per day (boe/d) (net) is supported by both waterflood and CO2 enhanced oil recovery. 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 OOIP pools. Its North area includes Grande Prairie, Clearwater and other properties.


TSX:CJ - Post by User

Post by righand2on May 27, 2017 6:28pm
136 Views
Post# 26292589

Debenture holders are confident

Debenture holders are confidentThe fact that the debentures are trading above par is a strong indication that those investors have zero worries about CJ's financial position. The conversion price is $10.50, a big premium to the present share price, and in a lot of circumstances the debentures would trade at a discount because of that. Since investors are willing to pay a premium, they see a very good chance that 1) CJ will have no problem paying them the interest on the debentures, and 2) they see a very good possibility that CJ's share price will get a lot higher than the conversion price.

Yes, CJ had a bit of a hiccup in Q1, but I think the rest of the year will be very positive for the company. If we do get some action on the price of oil because of OPEC's actions, that is all gravy.
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