Cardinal Provides an Update on the Operation of Its Thermal Business Unit and the De-Risking of Several Thermal Projects

Executive Summary

• Cardinal Energy provided a detailed update on its thermal oil development program, highlighting the successful ramp‑up of Reford 1 and outlining plans for two new SAGD projects – Reford 2 and Kelfield.
• Reford 2 is projected to cost ~​$140 M (base) with an optional $40 M expansion, target design capacity 4,250 bbl/d (expandable to >6,500 bbl/d), and a two‑year payout at current strip prices.
• Kelfield mirrors Reford 2’s design, targeting a minimum 4,000 bbl/d (expandable to >6,000 bbl/d) with similar capital requirements and timelines.

Key Details

• Reford 1 Performance: Operating above its 6,000 bbl/d nameplate; aiming for 6,500 bbl/d in Q1 2026.
• Reford 2 Project
• 100% working interest acquired H2 2025.
• Design capacity: 4,250 bbl/d (expandable to >6,500 bbl/d).
• Estimated base capital cost: ≈ $140 M; additional $40 M for expansion to 6,500 bbl/d.
• Construction timeline: ~18 months from start to first steam.
• Projected operating life: ~20 years.
• Expected payout: ~2 years at current strip oil prices.

• Regulatory applications underway; design leverages proven Reford 1 facilities.

• Kelfield Project

• 100% working interest held.
• Design capacity: minimum 4,000 bbl/d (expandable to >6,000 bbl/d).
• Similar capital cost structure and construction timeline as Reford 2.
• Projected operating life: ~20 years.

• Regulatory applications underway; adopts Reford 1 facility design.

• Additional Thermal Opportunities

• Initiated technical program on two further prospects within existing land base.

• Activities include re‑processing 3D seismic, re‑interpreting historic wells, drilling new stratigraphic wells, and updating reservoir models to refine resource estimates and deliverability.

• Strategic Outlook

• Ongoing discussions with Saskatchewan provincial ministries support long‑term thermal development across the land base.
• Projects aim to contribute toward the province’s goal of 600,000 bbl/d total oil production.
• Emphasis on capital efficiency, shared infrastructure, and responsible environmental stewardship.

Notable Quotes

No direct quotes were included in the release.