Cardinal Energy talks Reford 2, Kelfield SAGD projects

Executive Summary

• Cardinal Energy Ltd. provided a strategic update on its thermal business unit, highlighting the successful performance of the Reford 1 SAGD project and the advancement of two new development projects: Reford 2 and Kelfield.
• Reford 1 is currently producing above its 6,000 bbl/d nameplate capacity, with a target of 6,500 bbl/d by Q1 2026, demonstrating strong technical execution and reservoir quality.
• The company has consolidated 100% working interest in Reford 2 (located 10km north of Reford 1) and holds 100% interest in Kelfield (40km south), both targeting the Waseca channel with analogous geological attributes to Reford 1.

Key Details

• Reford 1 Performance:
  • Construction and commissioning completed ahead of schedule and on budget.
  • Currently producing above the 6,000 bbl/d (100% heavy oil) nameplate design capacity.
  • Targeting production volumes of 6,500 bbl/d in the first quarter of 2026.
• Reford 2 Project Highlights:
  • Location/Interest: Located ~10 km north of Reford 1; Cardinal holds 100% working interest (acquired in H2 2025).
  • Design Capacity: 4,250 bbl/d base, expandable to 6,500+ bbl/d.
  • Capital Costs: ~$140 million for base project; additional ~$40 million for expansion to 6,500 bbl/d.
  • Timeline: 18 months from commencement to first steam.
  • Payout: Estimated ~2 years to payout capital costs based on current strip oil prices.
  • Operating Life: Approximately 20 years.
  • Status: Regulatory application and review processes are underway; mapped with 3-D seismic and stratigraphic wells.
  • Synergies: Expected operational, cost, and infrastructure synergies with Reford 1 due to proximity; adopts proven Reford 1 facility and SAGD well design.
• Kelfield Project Highlights:
  • Location/Interest: Located ~40 km south of Reford 1; Cardinal holds 100% working interest.
  • Design Capacity: Minimum 4,000 bbl/d, expandable to 6,000+ bbl/d.
  • Operating Life: Approximately 20 years.
  • Status: Regulatory application and review processes are underway; mapped with 3-D seismic and stratigraphic wells.
  • Design: Adopts proven pre-existing Reford 1 facility and SAGD well design.
  • Costs/Timeline: Construction timelines and costs are similar to the Reford 2 project.
• Additional Thermal Projects:
  • Comprehensive technical program initiated on two further prospects within the land base.
  • Activities include reprocessing/reinterpreting existing 3-D seismic, acquiring new 3-D seismic data, re-evaluating historical stratigraphic wells/core with updated petrophysical workflows, and drilling new stratigraphic wells.
  • Goal is to refine initial development planning, work up resource size, and improve expected SAGD deliverability.
• Strategic Context:
  • Active discussions with the Government of Saskatchewan regarding long-term development potential.
  • Alignment with Saskatchewan’s objective of achieving 600,000 barrels per day of provincial oil production.
  • Strategy focuses on responsibly growing the thermal portfolio in high-quality, long-life reservoirs.