Core Insights - SLB has secured two five-year contracts with Petroleum Development Oman (PDO), enhancing its role in Oman's upstream oil and gas sector as the country aims to maximize recovery from mature assets and build domestic industrial capacity [1][7] Group 1: Contract Details - Under the agreement, SLB will supply wellheads and artificial lift systems for operations in Block-6, which is Oman's largest oil and gas concession and crucial for the country's hydrocarbon production [2] - The contracts emphasize PDO's focus on advanced recovery technologies and in-country value (ICV) to sustain output from aging reservoirs [2][7] Group 2: Technology and Solutions - SLB will provide a comprehensive range of wellhead systems, including low-pressure, high-pressure, and thermal solutions, as well as electric submersible pumps (ESPs) and progressive cavity pumps (PCPs) [3] - These technologies aim to enhance recovery rates, extend field life, and improve operational efficiency in Block-6, where complex geology and declining natural pressure necessitate artificial lift [3] Group 3: Localization and Job Creation - A key aspect of the contracts is localization, with wellheads manufactured at SLB's Rusayl production center and ESPs assembled, repaired, and tested at the Nizwa facility, creating hundreds of jobs for Omanis [4] - SLB plans to introduce made-in-Oman gate valve production within six months of contract commencement, further boosting domestic manufacturing capabilities [4] Group 4: Advanced Solutions - The company will implement advanced solutions such as the 15k SOLIDrill modular compact wellhead system, real-time ESP surveillance technologies, and permanent magnet motors for ESPs, which are designed to reduce power consumption and downtime [5] Group 5: Strategic Importance - These contracts reflect SLB's commitment to Oman's energy future and the advancement of in-country value through local manufacturing and talent development [6] - The agreements come as Oman seeks to maintain oil output above one million barrels per day through enhanced oil recovery, digitalization, and partnerships with global service providers [7]

Core Insights - Cardinal Energy Ltd. reported its third quarter 2025 operating and financial results, highlighting a decrease in revenue and cash flow compared to the same period in 2024 [1][2]. Financial Highlights - Petroleum and natural gas revenue for Q3 2025 was $127.0 million, down 14% from $148.0 million in Q3 2024 [3]. - Cash flow from operating activities decreased by 34% to $55.5 million compared to $83.6 million in the previous year [3]. - Adjusted funds flow was $47.3 million, a 28% decline from $65.7 million in Q3 2024, with a per share value of $0.29 [3][7]. - Earnings fell by 45% to $13.8 million from $25.1 million in Q3 2024 [3]. Production and Operating Metrics - Average daily production was 20,772 boe/d, a slight decrease of 2% from 21,128 boe/d in Q3 2024 [6][8]. - Net operating expenses per boe decreased by 1% to $24.05/boe compared to $24.40/boe in Q3 2024 [9]. - The company drilled four conventional oil wells during the quarter, focusing capital expenditures on the completion of the Reford SAGD project [8][14]. Capital Expenditures and Debt - Total capital expenditures for Q3 2025 were $26.7 million, down 21% from $33.9 million in Q3 2024 [6]. - The company drew $111 million, or 46%, from its $240 million credit facility, resulting in a net debt to adjusted funds flow ratio of 1.2x [10][36]. Project Updates - Cardinal invested approximately $14.4 million in the Reford thermal project, which has moved into the warm-up phase of initial operations [12][19]. - The project construction and initial commissioning were completed on budget and ahead of schedule, with expectations for higher production rates in Q4 2025 [17][21]. Environmental, Social, and Governance (ESG) Initiatives - The company sequestered approximately 52,000 tonnes of CO2 during Q3 2025, contributing to enhanced oil recovery operations [15]. - Cardinal's safety record and regulatory compliance remain among the top tier in the industry [16]. Outlook - The company anticipates that the Reford thermal asset will significantly improve production and adjusted funds flow in 2026, estimating an additional $100 million at a WTI price of US$65 [21]. - Cardinal plans to reinvest in its conventional business units in 2026 to address modest production declines experienced in 2025 [18].