Cardinal Energy Inc600, 400 – 3 Ave. SW, Calgary, Alberta, Canada

Cardinal Energy Ltd. is an oil focused Canadian company built to provide investors with sustainable yield and growth.  Management is focused on a disciplined growth plan, both financially and operationally, while providing a sustainable dividend to its Shareholders.

Management believes Cardinal has several competitive advantages that will help it execute its business strategy successfully:

• Solid Base of Low Decline Crude Oil Production

Cardinal's current oil focused production decline rate is estimated to be less than 15% per year. These decline rates will allow the Company to spend a relatively smaller portion of its budget replacing production decline, allowing more capital in its budget to be allocated to maintaining its dividend and enabling the Company to pursue production and cash flow growth opportunities.

• Operated Assets, High Working Interest

Cardinal operates 97% of its properties with an average working interest of 90%. Operating its assets allows the Company to dictate the pace of development of its organic growth opportunities while controlling the cost and timing. Operating its properties further allows Cardinal to achieve operating benefits as it consolidates future core areas. When considering future growth opportunities, the Company will target high working interest, operated crude oil properties with attractive netbacks.

• Large Development Drilling Inventory

Cardinal's drilling strategy is to engage in low risk development drilling with low capital exposure per well. Management believes that it has a multi-year drilling inventory consisting of approximately 40 development drilling locations as well as 40 contingent development drilling locations. Management is continually working to increase our drilling inventories.  

• Disciplined Growth Strategy

Cardinal is highly focused on building a sustainable business by establishing core areas with production in excess of 1,000 Boe/d and low decline rates. As Cardinal grows, it will maintain a low decline rate by continuing to acquire proven and established assets with lower production decline profiles than those of newly drilled wells. Cardinal's acquisition success in combination with its expertise in organically growing oil and gas production, will assist in achieving and maintaining low decline rates.

• Conservative Balance Sheet

Cardinal's long term corporate goal is to maintain a ratio of net debt to cash flow from operations below one which will provide the financial flexibility necessary for continued success in executing its acquisition program and organic growth. The Company had net debt of $3.9MM as of March 31, 2014. In addition, Cardinal has also established a rolling, three year corporate hedging policy to provide increased certainty in cash flows and dividends.

• Management Team with a History of Creating Value for Shareholders

Cardinal's senior management team has extensive experience in the oil and natural gas business in Western Canada. The senior team members have an average of 18 years of experience. The Company believes that its management team has the necessary skills and experience to build Cardinal into a successful dividend paying, oil focused, growth company supported by their experience and past involvement and success with growing several public and private companies from start-up to eventual sale. Management of Cardinal is experienced in acquiring, drilling, completing and operating vertical and horizontal wells in a number of areas and play types, including the areas currently owned and being acquired, in Western Canada.

• Track Record of Accretive Acquisitions

Cardinal has completed four major acquisitions since it commenced operations in May of 2012, resulting in production growth from zero to 6,300 Boe/d. The Company believes its management team is one of its core competitive strengths relative to industry peers due to the team's track record of identifying, sourcing and executing accretive transactions.

Board of Directors

M. Scott Ratushny

Mr. Ratushny has over 15 years of diverse oil and gas experience and has been involved in the creation, financing and growth of 9 successful private and public oil and gas companies. He has also been involved as director of two public oil and gas service companies. He has had a track record of creating value for his shareholders in each of the predecessor companies.

John A. Brussa

Mr. Brussa has been a partner of Burnet, Duckworth & Palmer LLP since 1987 and is presently the head of its tax group. Mr. Brussa is a director of several public oil and gas companies. Mr. Brussa obtained a Bachelor of Arts degree from the University of Windsor in 1978 and a Bachelor of Laws degree, with Gold Medalist distinction, from the University of Windsor in 1981. He articled with Burnet, Duckworth & Palmer LLP and was admitted to the Law Society of Alberta in June, 1982.

James C. Smith

Mr. Smith is a Chartered Accountant with over 40 years of experience in public accounting and industry. While Mr. Smith was the Vice President and Chief Financial Officer of Crestar Energy Inc. from its inception in 1992 until 1998, the company completed an initial public offering, was listed on the TSX and completed several major debt and equity financing transactions. From 1998 to 2006, he was a business consultant to a number of public and private companies operating in the oil and gas industry. Since 2004 he has been a director and audit committee chairman for a number of public and private companies.

David D. Johnson

Mr. Johnson has over 30 years of diverse experience in the oil and gas industry including a background in production, reservoir evaluation and operations. He has a B.Sc. in Petroleum Engineering, is a member of the Association of Engineers, Geologists and Geophysics of Alberta and has served twice as a governor of the Canadian Association of Petroleum Producers.

Gregory Tisdale

Mr. Tisdale is the Chief Financial Officer of Crescent Point Energy, a role he has held since 2004.  He has worked in the oil and gas industry since 1995, having held a variety of roles with companies such as Direct Energy Marketing Ltd., AltaGas Services Inc., Shell Trading Gas and Power Canada Ltd. and Engage Energy Inc.  Mr. Tisdale has served and currently serves on the board of directors of several junior oil and gas companies. He is a member of the Institute of Chartered Accountants of Alberta. Mr. Tisdale holds a Bachelor of Commerce degree (with distinction) from the University of Alberta.