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.

Thermal development in Saskatchewan has grown to produce over 150,000 bopd through 17 existing industry projects. Projects in Saskatchewan have several advantages compared to SAGD projects elsewhere including excellent surface access on existing paved roads, a supportive Provincial regulatory environment, off the shelf proven SAGD technology available at fixed pricing, lower viscosity oil, existing rail lines, and existing gas and oil pipeline infrastructure.

Reford
Our initial development project is targeting the Reford property. At Reford, 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. Capital costs over the next 2 years to develop this resource to produce 6,000 bopd are estimated at ~$155 MM. Our internal assessment is this project will be able to produce at those levels for 15 to 20 years.

Projects 2 and 3
Two additional stand alone projects both with up to 10,000 bopd potential have been identified. The Company plans over the next 3 years to complete assessment drilling to assist in finalizing development plans for these assets. It is currently anticipated that we will be in a position to move forward with the second project in late 2025.