Our north operating area is dominated by large original oil in place (“OOIP”) oil reservoirs that produce light oil under water flood. In addition, we have acquired lands within both the Clearwater and Dunvegan oil-producing areas, and have had repeatable drilling success with these assets. The north area is forecast to produce 7,200 boepd in 2024.
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.
Clearwater
Cardinal has continued to develop Clearwater acreage at Nipisi with an additional 4 wells drilled this past winter, with the wells coming on-stream in April. The combined production rate from the area is roughly 1,100 boepd. Cardinal will resume development drilling operations in this area in early 2024.
Along with our position at Nipisi, and as a result of offsetting industry activity, Cardinal has 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 with novel completion techniques and major operating cost reduction initiatives. As part of our 2024 budget, Cardinal is planning to drill one extended reach horizontal in Q4 2024.
Mitsue
Cardinal’s Mitsue property produces light oil (40° API) primarily from the Gilwood formation. The Mitsue Gilwood unit contained 818 million barrels of 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, facility consolidation and 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.
