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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 ebrie014on Nov 07, 2017 7:47pm
265 Views
Post# 26922053

RE:RE:S/P Loss...

RE:RE:S/P Loss...Net income/eps is not that relevant for oil companies due to large non cash expenses of their properties.

What people look at is FFO (or more importantly Adjusted funds flow) which came in at 23.2M or 0.21/share which is exactly in line with analyst estimates. Average daily production was also pretty spot on with analyst expectations of ~21.5M (21.463M actual which is really just rounding and considered a meet).

What is nice to see is the start of the royalty sale and further reduction of debt post Q3. On top of that the reduction in operating cost down to 20.3, the drilling of two wells which " are tracking to initial production rates well ahead of our expectations for the play", and the ongoing disposition of the remainder royalty sales. Not to mention a pretty good outlook going forward...

We will really start seing the benefits of this acquisition in Q4.

E.
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