Cardinal Energy Ltd. Announces Monthly Dividend for September and Commencement of Steam Injection into the Reford Thermal Project

Executive Summary

• Cardinal Energy Ltd. announced the commencement of steam injection at its Reford thermal oil project in Saskatchewan, marking the start of the warm-up phase prior to SAGD production.
• The company declared a cash dividend of $0.06 per common share, payable on October 15, 2025, to shareholders of record on September 30, 2025.
• Cardinal forecasts a significant production increase in Q1 2026, with total production expected to average 26,500–27,500 boe/d, driven by the Reford project ramp-up to a target of 6,000 bbl/d of heavy oil.

Key Details

• Dividend Details:
  • Amount: $0.06 per common share.
  • Payable Date: October 15, 2025.
  • Record Date: September 30, 2025.
  • Designation: Eligible dividend for Canadian income tax purposes.
• Reford Project Operations:
  • Steam injection commenced on August 21, 2025.
  • Construction is complete; the project is ahead of schedule and on budget.
  • Current Phase: Warm-up phase via steam circulation (approx. 90 days).
  • Current Output: Small quantities of oil being circulated to surface as an emulsion for processing.
  • Production Target: 6,000 bbl/d of heavy oil expected in Q1 2026.
• Production Forecasts:
  • Current Production: Approximately 20,600 boe/d.
  • Q1 2026 Forecast: 26,500 – 27,500 boe/d (a ~30% increase).
• Future Outlook:
  • Management is derisking additional thermal projects.
  • Expectation to announce sanctioning of the next project when oil pricing and corporate debt conditions align.
• Product Composition (Q1 2026 Forecast vs. Current):
  • Light/Medium Crude Oil: 37% (Forecast) vs. 48% (Current).
  • Heavy Oil: 52% (Forecast) vs. 38% (Current).
  • NGL: 3% (Forecast) vs. 4% (Current).
  • Conventional Natural Gas: 8% (Forecast) vs. 10% (Current).

Notable Quotes

• "Our new Southwest Saskatchewan thermal team has brought the project in ahead of schedule and on budget."
• "Oil production is expected to slowly ramp up for the next several months until hitting the production target of 6,000 bbl/d of oil in the first quarter of 2026."