Cardinal Energy Ltd. Announces 2025 Year-End Reserves

Executive Summary

• Cardinal Energy released its independent 2025 reserve report, showing a 24% increase in Total Proved reserves to 107.3 MMboe and a 30% rise in Total Proved + Probable (TPP) reserves to 147.6 MMboe.
• FD&A cost for TP reserves was $21.77/boe, while the company achieved a 1.1× production replacement ratio within the PDP category despite modest capital spending.
• The Reford 1 thermal project now contributes 64% of TP reserves; its NPV10 is estimated at $507 million (≈$3.16 per basic share).

Key Details

• Reserve Growth
• Total Proved (“TP”) reserves up 24% YoY to 107.3 MMboe (21% per basic share).
• Total Proved + Probable (“TPP”) reserves up 30% YoY to 147.6 MMboe.
• FD&A Cost
• $21.77 per boe for TP reserves (non‑GAAP metric).
• Production Replacement
• PDP replacement ratio of 1.1× in 2025.
• TP replacement ratio of 3.4×, with 64% of Reford 1 reserves now classified as proved.
• Reford 1 Highlights
• Year‑end 2025 reserve bookings: 5.8 MMboe PDP, 25.7 MMboe TP, 40.1 MMboe TPP.
• NPV10 (discounted at 10%) ≈ $507 million ($3.16 per basic share).
• Future Projects
• Reford 2 sanctioned on Jan 28 2026 with a concurrent $104.7 M equity financing; expected >15% production increase by 2027.
• Additional thermal projects (e.g., Kelfield) remain unbooked.
• Reserve Composition
• TPP reserves: 93% oil/NGL, 7% natural gas.
• Reserve Life Index (RLI): 9.1 yr PDP, 12.5 yr TP, 17.2 yr TPP.
• Financial Metrics
• Three‑year average FD&A costs: $20.27/boe (PDP), $19.81/boe (TP), $17.05/boe (TPP).
• Undiscounted Future Development Costs (FDC) for TPP at year‑end 2025: $710 M; discounted at 10% = $329 M.
• Reserve Reconciliation (2024 → 2025)
• TP increased from 50.6 MMboe to 107.3 MMboe (net +56.7 MMboe).
• TPP increased from 67.0 MMboe to 147.6 MMboe (net +80.6 MMboe).
• Price Forecast Assumptions
• Consultant‑average WTI price in 2026: US$59.92/bbl; Canadian Light Sweet: C$77.54/bbl.
• Exchange rate (C$/US$) assumed at 0.728 for 2026, rising modestly to 0.740 by 2030.

Notable Quotes

• Scott Ratushny, Chairman & CEO: “2025 was an exciting year of transition… we can now look forward to decades of predictable free cash flow and low‑cost reserve additions from this asset… Reford 2 is expected to increase production by more than 15% in 2027.”

All non‑material boilerplate, forward‑looking disclaimer text, and company background have been omitted for brevity.