Cardinal Asset BuyI figured it was summerlands assets even before I could confirm it...I mean logical as Rubelite or Spur wasnt selling anything...lol those companies are looking too add more clearwater not sell.
It is a good clearwater property they got...low on water content and those wells Summerland drilled there are not for long...not even a full section in length. Cardinal going to drill it slightly longer and betcha they will increase per well productivity by 25% or more. Cardinal technical team is solid at finding oil. They are matching the latest in tech.
So how was Cj able to get this if it is good?
Well, think of it from perspective of summerland, summerland also has clearwater property by gift lake and they are hitting very good wells here and all recently. It is hard too borrow cash right now and summerland is likely going to take this 25m and drill hard in gift lake, it doesnt make sense too wait. The gift lake wells are not even a section and hitting 40k barrels in 8 months....kavern thumbs up type well....be such a good payback 4 months or less that Summerland should have a drill rig going full bore flat out. This allows summerland to fund gift lake...summerland couldnt do both properties not big enough company to do it.
CJ also has prior deals with summerland. Off top of my head I forget all propertirs but I think summerland has land by cj in beaverldodge, Management would know each other.
Win win scenario as CJ is good at drilling these type of properties and summerland has capital to drill gift lake fast.