Cardinal Energy Ltd. Announces 2025 Year-End Reserves

Core Viewpoint - Cardinal Energy Ltd. has reported its independent reserve results for the year ending December 31, 2025, highlighting significant growth in both conventional and thermal reserves, particularly from its Reford projects, which are expected to enhance production and cash flow in the coming years [1][3][4]. Reserve Report Highlights - The 2025 Reserve Report indicates a 24% increase in Total Proved (TP) reserves compared to 2024, with a Finding, Development, and Acquisition (FD&A) cost of $21.77 per barrel of oil equivalent (boe) [12]. - Cardinal's Total Proved Plus Probable (TPP) reserves now consist of 93% light, medium, and heavy crude oil and natural gas liquids, with a reserve life index (RLI) of 9.1 years for Proved Developed Producing (PDP) reserves [12][22]. - The Reford 1 project has contributed significantly to reserves, with year-end 2025 bookings of 5.8 million boe PDP, 25.7 million boe TP, and 40.1 million boe TPP, representing 7%, 25%, and 27% of total corporate reserves, respectively [12][22]. Financial Metrics - The before-tax net present value discounted at 10% (NPV10) of Reford 1 is estimated at $507 million, equating to $3.16 per basic share, based on the average pricing forecast from three consultants [12][22]. - Future development costs (FDC) associated with TPP reserves at year-end 2025 are estimated at $710 million undiscounted, with $329 million discounted at 10% [23][24]. Production and Development Plans - Cardinal anticipates a production increase of over 15% in 2027 with the launch of the Reford 2 project, following the successful establishment of Reford 1 [4][12]. - The company has multiple years of conventional inventory to develop alongside the expansion of its thermal asset portfolio, indicating a robust growth strategy [12][22]. Price Forecast - The average commodity price forecast for 2026 includes WTI at $59.92 per barrel and AECO natural gas at $3.00 per million British thermal units (MMBtu), with gradual increases projected through 2030 [19][20].