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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 Quintessential1on Mar 06, 2024 10:04am
168 Views
Post# 35917855

RE:RE:RE:Sagd production start date

RE:RE:RE:Sagd production start dateI believe so.  The SAGD production is not included in the near future revenue models with the exception that its cap-ex does affect the payout and debt ratios as capital is obviously being deployed.

Not really a big deal if you consider that by the time SAGD is streamed into production in 2026 it will have the effect of increasing production by about third at a lower cost per barrel than what is currently produced so you can infer a 30% plus increase in revenue.  

That should allow for the funding of the second SAGD project along with some debt repayment and shareholder returns via either buybacks or a div bump or a little of both.  Then you are going to really see the share price move up.  If it sees that 30% plus traction from revenue beside a 10-12% annual yield and you are looking at a 50-60% ROI over the next two years from here.  At 25-30% per year it is not the flashiest return in the market but it appears to be safer than those that offer more and pays out some of it (10-12%) monthly as you go.

And that's if oil doesn't go up at all.

GLTY and all



lnggasfor202324 wrote: Those numbers from all the SAGD land isn't including either in my numbers from my last post from the top of my head if i remember reading that correctly.


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