Cardinal Energy Expands Reford 2 SAGD Project, Boosts Nameplate Capacity

Cardinal Energy Ltd., a Canadian oil and natural gas production company, is proceeding with the expansion of its Reford 2 SAGD project to increase nameplate capacity to 6,000 barrels per day (bbl/d). This decision comes after Cardinal's management determined that the favorable crude oil price environment outpaces their 2026 budget forecast.

The expansion will cost approximately $40 million, implying an attractive capital deployment efficiency of around $23,000 per flowing barrel. Most of these expenditures are expected to be incurred in 2027.

Cardinal's Reford 1 project has already achieved a significant milestone by producing over 2,000,000 barrels of oil since first steam on August 21, 2025. Production from this asset continues to outperform expectations, with year-to-date average volumes exceeding nameplate capacity of 6,000 bbl/d.

As a result of higher than forecasted adjusted funds flow in the first half of 2026 and the current WTI oil price strip outlook, Cardinal is on pace to exit 2026 undrawn on its $275 million credit facility.