CALGARY, ALBERTA–(Marketwired – Jan. 7, 2014) – Cardinal Energy Ltd. (“Cardinal” or the “Company“) (TSX:CJ) is pleased to announce that Mr. Greg Tisdale has joined its Board of Directors effective today. Mr. Tisdale is the Chief Financial Officer of Crescent Point Energy Ltd., a role he has held since 2004. During the past ten years he has managed all aspects of Crescent Point’s finances. Mr. Tisdale has worked in the oil and gas industry since 1995 and has served and currently serves on the board of directors of several junior oil and gas companies. Mr. Tisdale holds a Bachelor of Commerce degree (with distinction) from the University of Alberta and is a Chartered Accountant.
Cardinal also announces that its Board of Directors has approved a current dividend policy of $0.05417 per common share per month for the first quarter of 2014, based on the current economic conditions of its business. Cardinal’s long-term objective is to set a dividend policy at prudent levels while withholding sufficient funds to finance capital expenditures required to grow its production base by a target of 5% to 10% annually. This in turn, is expected to provide a stronger base of cash flow leading to consistent dividends into the future. Cardinal’s dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, the Company’s hedging program, current operations including production levels, operating costs, royalty burdens and debt service requirements, available investment opportunities and the satisfaction of applicable corporate liquidity and solvency tests for the declaration and payment of dividends.
Cardinal has declared this dividend to be paid on February 17, 2014 to shareholders of record on January 31, 2014 with an ex-dividend date of January 29, 2014. The Board of Directors of Cardinal has declared the dividend payable in either cash or common shares at the election of the shareholder. This dividend has been designated as an “eligible dividend” for Canadian income tax purposes.
|Record Date||Payment Date||Dividend per
|January 31, 2014||February 17, 2014||$0.05417|
|February 28, 2014||March 17, 2014||$0.05417*|
|March 31, 2014||April 15, 2014||$0.05417*|
|* The above reflects an anticipated dividend based on Cardinal’s currently projected commodity prices, commodity hedge positions and production volumes. Dividends are subject to change should there be a material change in forecasted funds from operations for the respective periods.|
Cardinal also announces that it has adopted a dividend reinvestment plan (the “DRIP“) and a stock dividend program (the “SDP“) which is expected to be in place commencing with the dividend to be paid on February 17, 2014 to shareholders on record as of January 31, 2014.
About Cardinal Energy Ltd.
Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal’s operations are focused in all season access areas in Alberta.
This news release contains forward-looking information that involves known and unknown risks and uncertainties, most of which are beyond the control of Cardinal. Forward-looking information in this press release includes, but is not limited to, Cardinal’s dividend policy, the amount of and timing related to the payment of future dividends, expectations regarding consistency of future dividends, plans to grow Cardinal’s production base by a target of 5% to 10% annually, future cash flow and the timing of the implementation of Cardinal’s DRIP and SDP.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, Cardinal does not assume any obligation to update or revise them to reflect new events or circumstances.
M. Scott Ratushny
Chief Executive Officer and Chairman
Cardinal Energy Ltd.
Chief Financial Officer
Cardinal Energy Ltd.
(403) 234-0603 (FAX)