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Cardinal Energy Ltd. Announces Fourth Quarter 2023 and Year-End Financial Results
Calgary, Alberta--(Newsfile Corp. - March 14, 2024) - Cardinal Energy Ltd. (TSX: CJ) ("Cardinal" ...
About this update from Cardinal Energy Ltd.
[{"type":"text","content":"Cardinal Energy Ltd. Announces Fourth Quarter 2023 and Year-End Financial ResultsCalgary, Alberta--(Newsfile Corp. - March 14, 2024) - Cardinal Energy Ltd. (TSX: CJ) (\"Cardinal\" or the \"Company\") is pleased to announce its operating and financial results for the fourth quarter and year ended December 31, 2023.HIGHLIGHTS FROM THE FOURTH QUARTER AND FULL YEAR OF 2023Production for the fourth quarter and for the full year of 2023 increased by 4% and 1%, respectively, over the same periods in 2022.Adjusted funds flow(1) for the fourth quarter was $64.0 million and for fiscal 2023 was $253.7 million. For the full year 2023, adjusted funds flow was directed towards:Direct returns to shareholder through $115.8 million in declared dividends and $3.0 million in common share treasury purchases;Capital expenditures(1) of $117.3 million and exploration and evaluation expenditures of $4.9 million; andAsset retirement and decommissioning liability expenditures of $23.2 million, more than double Cardinal's regulatory requirement. Capital expenditures of $117.3 million were directed towards the drilling of 20 wells (18.6 net) in addition to the strategic Mitsue/Buffalo Lake acquisition located within Cardinal's core operating areas for total consideration of $24.6 million. In addition, the Company acquired Saskatchewan heavy oil assets for non-cash consideration of $10.0 million through the issuance of Cardinal common shares at a value of $7.35 per share. Total payout ratio(1) for the fourth quarter was 70% compared to 89% in the prior year comparative quarter. Cardinal incurred $4.9 million in cash exploration and evaluation expenditures during 2023 which were principally directed towards drilling stratigraphic wells as part of the evaluation and de-risking of Cardinal's Reford, Saskatchewan thermal project.During 2023, Cardinal initiated the development of a steam assisted gravity drainage (\"SAGD\") project in its Reford, Saskatchewan operating area, that upon expected completion in the fourth quarter of 2025, is anticipated to produce approximately 6,000 bbl/d (100% heavy crude oil). See \"Saskatchewan Thermal Project Summary and Update\" for additional details. Net operating costs per boe(1) for the fourth quarter were 10% lower than the comparative quarter, and for the full year 2023 were 2% lower than the prior year. G&A costs pe...