News OUTLOOK
2022 was a very successful year for Cardinal and its shareholders. When we prepared our 2022 budget in late 2021, our focus was to accomplish three things: reduce the risk in our business, improve our sustainability and provide returns to shareholders.
Our single largest achievement in 2022 was the significant reduction in our debt. At current debt levels we no longer view debt as a significant risk factor but will strive to reduce it to zero as appropriate.
Sustainability was dramatically improved in 2022 with large increases to our development drilling inventory throughout our asset base.
In our Central operating area, we were able to identify and test an oil zone using new multi-leg technology resulting in the successful drilling of a well which, with further land acquisitions in 2022 and 2023, has given us an estimated 90 development drilling locations. The success of this play not only gives the area a large inventory of future locations but has the added benefit of reducing the operating costs on existing production and facilities through economies of scale. Cardinal plans to drill six to eight wells on this play in 2023 which, if successful, we expect will reduce operating costs on the existing property by $8-$9/boe based on approximately 1,100 boe/d of current production. Although this is one example of true half cycle economics, we are doing similar projects in our Southern Alberta business unit and receive this benefit in our other operating areas as well.
Our overall focus for 2023 will not change from 2022. Continue to improve our sustainability, reduce risk and ensure returns to shareholders utilizing our NCIB, dividends and special dividends when appropriate.
https://www.stockwatch.com/News/Item/Z-C!CJ-3377274/C/CJ