(Daily Oil Bulletin) 鈥� , which operates the Midale Unit, focused in 2018 on the improvement and advancement of its core assets through both the drilling of new wells and the continuing optimization of enhanced recovery operations within its existing production base. Cardinal invested $21.4 million in drilling, completing, equipping and tying in 17 (10.6 net) wells on its Alberta and Saskatchewan asset base. In addition, the company drilled 15 stratigraphic test wells which served to further delineate its Ellerslie and Glauc channel locations in the Bantry area of Alberta.
In southern Alberta, Cardinal proved up the economic and operational viability of its horizontal multi-leg, open hole Ellerslie concept with three successful new drills. In aggregate, these three wells are currently producing over 800 barrels of oil equivalent per day (boepd) and have been producing for an average of five months. Cardinal believes that the success of these initial Ellerslie wells proves up a large inventory of locations for future development.
Also in southern Alberta, Cardinal continued with its successful development of Glauc channels via horizontal drilling with three successful wells. In aggregate, these three wells are currently producing more than 550 boepd after seven months of production.
鈥淔urthermore, with our modernized wellbore and completion design, Cardinal realized an all-in cost reduction for these three wells of more than 13 per cent, when compared to our costs for previous Glauc channel wells drilled in this area.鈥�
Major oil producing assets under enhanced recovery continued to be optimized, with injection volumes 小蓝视频 directed toward areas expected to respond most significantly. At Midale, the company鈥檚 initiative to increase injected CO2 volumes, and to direct those volumes to the most appropriate locations within the reservoir have resulted in a distinct shallowing of the production decline.
鈥淭hroughout the company, the effects of these efforts is best illustrated by positive revisions to our proved developed producing reserves,鈥� the company said.
Capital
Approximately 20 per cent of聽Cardinal Energy Ltd.鈥檚 capital budget is allocated to long-term operating costs reduction initiatives which include reducing its electricity and facility costs.
The remainder of the $47 million capital budget is directed to well optimization, drilling, facility upgrades and continuing the expansion of enhanced oil recovery projects at Midale.
The base capital program includes the drilling of six (6.0 net) oil wells in the company's Bantry, Alberta area to take advantage of a land earning farm-in opportunity.
Cardinal also expects to drill two (1.5 net) wells in its Midale, Saskatchewan area where provincially mandated production curtailments are not in place.
