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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

Comment by d_trumpon Jun 01, 2017 6:24pm
128 Views
Post# 26313902

RE:About value..

RE:About value..the assets purchased are light oil with a much higher netback than CJ's existing assets, so you are comparing apples to oranges.  CJ's Q1 oil netback was $16/barrel, the acquired assets have a $30 netback, so of course they are worth much more.    ALSO - the acquired assets have a lower decline rate than CJ's existing assets.

Also acquiring higher netback assets provides CJ with greater protection should oil prices head south.  Another factor (that I can't quantify) is the acreage they are acquiring (ie reserves).
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