Cardinal Energy Expands Reford 2 SAGD Project to 6,000 Bbl/d Capacity
News related to:Cardinal Energy Ltd · 2 min read
Cardinal Energy Ltd. is expanding its Reford 2 SAGD (Steam Assisted Gravity Drainage) project, aiming to increase its nameplate capacity to 6,000 barrels per day (bbl/d) from the original plan of 4,250 bbl/d. The company is excited about the expansion, which is being driven by a favorable crude oil price environment that has outpaced its 2026 budget forecast.
The incremental cost of the expansion is estimated at approximately $40 million, with an expected capital deployment efficiency of around $23,000 per flowing barrel. Most of the expenditures are forecasted to be incurred in 2027. Under this increased scope, Cardinal anticipates delivering top-tier, full-cycle capital efficiencies of $30,000 per flowing barrel or less, replicating the performance achieved with Reford 1.
Cardinal Energy Ltd. is maintaining the original schedule for the Reford 2 expansion, with first steam anticipated in the summer of 2027 and the ramp to nameplate capacity expected in early Q4 2027. The company has already achieved significant milestones with its Reford 1 project, having produced 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 6,500 bbl/d, which surpasses the nameplate capacity of 6,000 bbl/d.
Cardinal Energy Ltd. is also on track to exit 2026 undrawn on its $275 million credit facility, based on higher-than-forecasted adjusted funds flow in the first half of 2026 and the current WTI oil price strip outlook.
The company is scheduled to attend the Peters & Co. Limited 30th Annual Energy Conference in Toronto, Canada, on September 15-17, 2026, and the TD Cowen 3rd Annual Energy Conference in Austin, Texas, on September 23-25, 2026. The updated corporate presentation is available on the company's website at cardinalenergy.ca.
In other news, Cardinal Energy Ltd. has confirmed its September dividend of $0.06 per common share, to be paid on October 15, 2026, to shareholders of record on September 30, 2026. The dividend has been designated as an "eligible dividend" for Canadian income tax purposes.