Cardinal Energy Ltd., Calgary, increased its 2021 capital program to $46 million on the increase in oil prices and plans to drill two wells in each of its four operating areas in Alberta and Saskatchewan. The initial $27-million program did not contemplate drilling any wells for the year.
The company generated $16.1 million of adjusted funds flow, an 8% increase over the same period in 2020 and a 19% increase over the prior quarter. Excluding realized hedging losses, adjusted funds flow was $30 million.
Average production for the quarter was 18,385 boe/d. The company reduced net debt by $28.4 million, or 11% from yearend 2020.
The revised budget contemplates drilling eight wells across operating areas which includes two CO2 injection wells at Midale, Sask. for its enhanced oil recovery program.
The revised budget is forecasted to allow the company to increase production through the year with a fourth quarter average rate increasing by 10% over the initial 2021 budget.
Drilling of the company’s first Clearwater wells is expected in early 2022.
