North District

Grande Prairie
The Grande Prairie property produces predominantly light oil from the Dunvegan formation. Cardinal has drilled 13 horizontal wells since acquiring this property in 2017 and has over 15 additional locations identified. Future upside in the Charlie Lake interval is currently being assessed.

Nipisi Clearwater
Cardinal drilled its first 4 well pad at Nipisi this past winter, with the wells coming on stream in April. The combined production rates from these four wells have stabilized between 700 and 800 barrels per day. Cardinal anticipates resuming development drilling operations in this area in early 2023. Along with our position at Nipisi, and as a result of both offsetting industry activity and success at recent land sales, Cardinal increased its prospective undeveloped land inventory on the Nipisi – Peavine Clearwater trend to 12,000 acres across three prospects.

House Mountain
The House Mountain property produces light oil (41° API) from the Swan Hills formation. The majority of production is on an enhanced oil recovery (“EOR”) scheme which gives it a low predictable decline rate. Cardinal will continue to develop this property with horizontal drilling and major operating cost reduction initiatives.

Mica
Located in Northeast British Columbia, the Mica property produces light oil and natural gas from Triassic aged reservoirs. Further optimization of the existing secondary recovery scheme is under consideration along with infill horizontal drilling.

Mitsue
Cardinal’s Mitsue property produces light oil (40° API) primarily from the Gilwood formation. The Mitsue Gilwood unit contained 818 million barrels of original oil in place (“OOIP”) and is under a long established EOR scheme. Cardinal is focused on managing overall production rates and oil recoveries on the Gilwood Unit through waterflood optimization and operating cost reduction initiatives.

Area 2022 Budget & Statistics

NOI

($55MM-$60MM)
 
25%

Capex

($20MM)
 
27%

P FCF*

($35MM-$40MM)
 
23%

Production

(6,300-6,500 boe/d)
 
32%

Drilling Inventory

(# potential Tier 1 locations)
 
38

*P FCF (Property Free Cash Flow) = Net Operating Income Less Capital Expenditures