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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 JayBankson Sep 30, 2023 4:33pm
404 Views
Post# 35663489

RE:Should CJ Be Interested In GXE?

RE:Should CJ Be Interested In GXE?Could we not pick up all of GXE and maybe split it with someone else just taking on the areas that work well with us? Lower the acquisition costs, premium or no premium... and I'd rather take it on debt than shares...

I have no real interest in being debt free unless there is no sensible acquisition opportunities. I like leverage that makes sence, let the experts of the company use thier expertise in growing my investment here... I'll pay the bank a cut if I can make a higher return rate, the safety of being in a debt free position is overrated. Being debt free means you have no better ideas for growth.

We could up our production number, and with our FCF it wouldn't take long to eat that debt (I'm seeing $235M market cap currently), we are likely going to see 20-30M free cashflow go to just our debt at this $85-90/Oil... up the dividend a penny (as that's what they were paying monthly at a lower oil price) and if thier lands are any good maybe we can crush 25-40M FCF to the debts per quarter from the extra production.
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