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Cardinal Energy Lowers Bantry Well Costs

Share Print Bookmark    |    Tuesday,July 28,2015

Cardinal Energy Ltd. has announced its operating and financial results for the three and six months ended June 30, 2015.

Financial and Operating Highlights

• Production for the second quarter increased 74% to 11,294 boe/d compared to the second quarter of 2014.
• Development capital expenditures totaled $11.3 million and included drilling 4 wells at Bantry and optimizing wells and facilities to maintain production.
• The new wells at Bantry had average drilling and completion costs $1.7 million, significantly lower than similar wells drilled in 2014.
• Cash flow from operations for the second quarter of 2015 increased 27% to $29.9 million compared to the corresponding period in 2014.
• In the second quarter of 2015 Cardinal unit operating expenses decreased by 5% to $21.99/boe from the first quarter.
• During the second quarter of 2015 Cardinal closed its light oil acquisition of Pinecrest Energy Inc.
• Cardinal's total payout ratio for the second quarter of 2015 was 77%, lower than the expected total payout ratio of 82% for the year. The simple payout ratio for the quarter was 40%.

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Guidance Confirmation

There has been no change to Cardinal's base capital expenditures budget for 2015.

The budget is anticipated to result in average and exit production for 2015 of approximately 11,200 boe/d and deploys total development capital of $30 million.

We continue to expect $95 million in cash flow from operations based on a forecast WTI price of USD $55/barrel, an exchange rate of 0.80 $USD/CAD, a differential to WCS of $15.75 and the effect of our existing 2015 hedges. The budget achieves a total payout ratio of 82%.