Cardinal Energy Ltd. (“Cardinal” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of certain non-core oil and natural gas interests located in the Rainier, Forestburg and Wainwright South areas of Alberta (the “Properties”).
The Properties consist primarily of operated, high working interest oil production. Cardinal is selling the Properties in order to focus its operations in its core areas.
Average daily production net to Cardinal from the Properties for the first two months of 2023 was approximately 131 barrels of oil per day.
Operating income net to Cardinal from the Properties in the first two months of 2023 averaged approximately $72,000 per month, or $864,000 on an annualized basis.
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Properties (the “GLJ Report”) as part of the Company’s year end reporting. The GLJ Report is effective December 31, 2022 using an average of GLJ, McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s January 1, 2023 forecast pricing. GLJ estimated that, as at December 31, 2022, the Properties contained remaining proved plus probable reserves of 507,000 barrels of oil and natural gas liquids and 58 MMcf of natural gas (517,000 boe), with an estimated net present value of $8.0 million using forecast pricing at a 10% discount.
Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Cash offers relating to this process will be accepted until 12:00 pm on Thursday, June 15, 2023.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.