November 4, 2024
Cardium oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $43.58/Bbl for wells with an Initial Productivity (IP) greater than 1200 Bbl/d to a high of USD $88.79/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $11.90/Bbl while royalties & taxes and overhead are USD $12.34/Bbl. F&D costs range from USD $3.78-$31.47/Bbl and the 15% producer return ranges from USD $2.39-$19.91/Bbl. The assumed WTI differential is USD $13.18/Bbl.
Full-Cycle Cost Curve
Incorrys analysis shows that there is just over 1,000 MMBbl of oil resource available below USD $50/Bbl and 2,700 MMBbl available below USD $60/Bbl. Current production (2023) was 36 MBbl/d (13.1 MMBbl/yr).
Cardium Basin Location
Cardium wells are located southwest of Edmonton, Alberta extending as far north as Grande Prairie and south as Calgary.
Number of Drilling Locations
Incorrys estimates that Cardium has 7,300 drilling locations with productivity greater than 300 Bbl/d and over 29,000 drilling locations with productivity below 300 Bbl/d.