Established in 2023 through the acquisition of assets from Broadview Energy and subsequent crown land sales, Cardinal has captured several potential thermal (SAGD) properties. When developed, these properties have the potential to materially increase the low decline production base and free cash flow of Cardinal while decreasing corporate break-even costs and G&A.

Thermal development in Saskatchewan has grown to produce over 165,000 bopd through 25 existing industry projects. Projects in Saskatchewan have several advantages compared to SAGD projects elsewhere including excellent surface access near provincial highways, a supportive Provincial regulatory environment, off-the-shelf proven SAGD technology available at fixed pricing, lower viscosity oil,  marketing optionality, and established gas and oil pipeline infrastructure.

Reford 1
Our initial development project has targeted the Reford 1 property. At Reford 1, a thick Waseca channel defined by existing and recently drilled Cardinal assessment wells and 3D seismic, with porosities over 30% and net pays up to 20m, has established a significant heavy oil resource. Cardinal sanctioned Reford 1 in November 2023, began construction in July 2024, achieved first steam in August 2025, and reached and exceeded nameplate design rates of 6,000 bopd in January 2026. This development has established a new commercial SAGD thermal trend in Saskatchewan.

Reford 2
Reford 2 located 10 km north of Reford 1 is targeting the same Waseca channel with similar reservoir characteristics. Reford 2 will deploy an identical modular surface facility design as Reford 1 with the same SAGD well pair design and operational philosophy. Reford 2 will initially be constructed to a nameplate design of 4,250 bopd with the ability to expand to 6,500 bopd. Reford 2 was sanctioned in January 2026, first steam is expected in Q3/2027 and is forecasted to reach nameplate capacity in Q4/2027.

Thermal Inventory
Over our 65,000 acres of land, Cardinal has identified several future, potential thermal projects including the fully assessed Kelfield project. The Company will continue to delineate these opportunities to assess development potential while exploration efforts are ongoing to identify additional thermal opportunities.