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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 oilyexecon Apr 20, 2018 8:37am
104 Views
Post# 27916006

RE:The reasons I bought CJ over BNE

RE:The reasons I bought CJ over BNEJust a note blueoiler: Light crude has a LOWER viscosity not higher (as you stated). Think molasses. High viscosity = very viscous = very thick = higher density = lower API gravity.

Light crude (+30' API) is NOT stacking up in refineries as per previous fake news. Check out the Oil & Gas Journal archives for correct info. Mexican Maya (20' API) is priced at an $8 discount to WTI (39.5' API) which tells you that the refineries achieve a higher crack spread with low viscosity crude. The future price upside is greater for heavy crude as the Gulf Coast refineries are built for average 30' API oil.

Also, the vast majority of crude oil exports from the USA are light oil and there is a major shortage of light oil in the far east (China) refineries. I agree, that with heavy crude production declining rapidly in Venezuela (and Mexico) the WCS/WTI differential will narrow even more than what we have seen recently. The rails are a problem but Enbridge and TransCanada are improving efficiencies by removing the "air gap" of nominated but not delivered volumes.

I'm buying more CJ.
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