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 6,500 boepd in 2023.
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.
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 600 and 700 barrels per day. Cardinal will resume 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.
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.
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.
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 and operating cost reduction initiatives.