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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 Kontraryon Jul 11, 2021 6:10pm
273 Views
Post# 33528104

RE:RE:RE:RE:RE:Two outta three aint bad .......

RE:RE:RE:RE:RE:Two outta three aint bad .......The reason that the stock price dropped to 40 cents in last year's economic climate was that the cash flow to debt ratio was way out of whack due to the severe drop in oil prices. CJ's Management spent most of the year fighting with their bankers and staving off bankruptcy. Now that they are cash-flow positive once again, I can understand why they are debt-averse and are iniitally interested in driving debt levels down much lower than where they are at now. That will give them a lot more flexibility going forward as well as some much-needed stability if oil prices return to lower levels. 
Paying off debt will be as beneficial to the share price as if they were to start paying a dividend again. Once they have brought their debt down to more manageable levels, I believe they will restore the dividend. Until then, I'm glad I bought more at $0.50 and I'm prepared to wait for even better things to come. . 
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