Post by
Kherson on Nov 06, 2023 10:35pm
Expansion into SAGD production... Wow... Excellent...
REFORD
Cardinal has identified Reford as its first project for development. We have decided to take a conservative approach in developing our first SAGD asset and have focused our development plan on building a 6,000 bopd SAGD facility. Our decision to start with this size of project was based on the capital cost and the project's ability to produce at a flat production profile for approximately 20 years. By taking a conservative first step into SAGD, Cardinal expects it will be able to increase its sustainability in a controlled growth environment while developing a project that will further our low decline/free cash flow model. Reford development expenditures are targeted to be approximately $155 million in total from start to first steam. We anticipate the project will take 22 months to implement to full production, with project kickoff expected to happen in Q4 2023.
In 2024, the majority of the initial capital costs will be constructing the SAGD facility with minor onsite costs. Cardinal forecasts at estimated pricing and development costs, the Reford thermal project will payout within 18 months of initial production.
In my opinion, this new direction that Cardinal is taking changes everything.
Kherson