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Laurence Broos
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Press Releases

Cardinal Energy Ltd. announces 2018 year-end reserves

Mar 5, 2019

Calgary, Alberta – Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX:CJ) is pleased to present its 2018 year end reserves which reinforce our successful 2018 drilling program and the low decline nature of our asset base.


  • Proved Developed Producing ("PDP") reserve additions of 10.7 mmboe replaced 2018 production by 1.4x, predominantly through organic growth and Total Proved plus Probable ("TPP") reserve additions of 12.7 mmboe replaced 2018 production 1.7x.
  • PDP Finding Development and Acquisition Costs ("FD&A") including the change in future development costs ("FDC") was $4.12/boe with a recycle ratio of 5x, primarily through a combination of positive technical revisions at Bantry, Midale and Wainwright due to performance exceeding the prior year projections and positive 2018 drilling results.
  • Achieved a TPP FD&A of $7.99/boe including the change in FDC with a recycle ratio of 2.6x on TPP reserves.
  • Increased our PDP Reserve Life Index ("RLI") to 10 years and our TPP RLI to 14.8 years. ? PDP Net Present Value (before tax) discounted at 10% ("NPV10") increased 9% to $8.73 per share and TPP net asset value increased 8% to $11.81 per share.
  • PDP NPV10 increased 15% over 2017.
  • 86% of Cardinal's reserves are producing (proved plus probable producing) which reflects the low risk predictable nature of our asset base.
  • 73% of the TPP reserve additions are producing.
  • Top Quartile reserve results in our peer group in 2018 for: % PDP of TPP reserves; TPP Recycle Ratio; FD&A; FDC/2019 adjusted funds flow; PDP RLI.

1. See Oil and Gas Metrics

In an era of production curtailments and volatile oil pricing, Cardinal's low decline separates our business model from other conventional oil producers as it requires minimal drilling capital to sustain production.

The ability to generate organic reserve growth is evident as our positive technical revisions contribute to our year over year reserve growth demonstrating both our staff's technical aptitude in managing these assets and the quality of the assets themselves. In 2018, Cardinal acquired additional working interest reserves (net of dispositions) which accounted for 13% of the PDP and TPP reserve additions. Cardinal specifically targeted the acquisition of each of the assets it owns for their predictable low decline profile.

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