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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 OOU812on Feb 04, 2019 11:58am
116 Views
Post# 29314975

RE:RE:RE:Every company is buying back but Cardinal

RE:RE:RE:Every company is buying back but Cardinal

Buying back debentures at ~5% discount is a good idea.

Buying back shares at ~50% discount is a terrific idea.
 

Cardinal's 2017 finding cost was $12 boe.Cardinal is currently trading for $5 boe.

Hard to justify drilling when you're spending two and a half times what your reserves

are trading for.Doing one's drilling on the stock exchange floor is not only less risky

but in Cardinal's case a lot more profitable.Dividend payers have another good reason

for buying back shares.Every share bought back is one less share to pay dividends

on forever.Based on Cardinal's old dividend, the current yield would be closer to 20%.

The future savings for each share bought back is tremendous,similar to paying off

one's credit card balance.

Should Cardinal be buying back shares? Every possible share (issuer bid, max 10%)

and a Dutch auction for the rest.

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