A List of Cardium Oil Stocks

The last post explained briefly what the Cardium oil formation was all about.  Today we will cover the Cardium producers and land owners who are operating in this patch along with a view on mergers and acquisitions.

The companies operating in the Cardium trend have been there for years. After all, this area has been producing oil and gas since 1953. With the technological breakthrough of horizontal drilling and multi-stage fracturing unlocking deep light oil reserves (8.5 billion barrels untouched by vertical drilling), companies who wished to expand their presence in that area had not much of a choice but to take the acquisitions way since very little Cardium land remains in Crown hands.

In the last few months at least 4 companies were bought out by rivals:

  • Nexstar Energy was acquired by Result Energy in December 2009.
  • Berens Energy was acquired by PetroBakken in February 2010.
  • Result Energy was acquired by PetroBakken in January 2010.
  • West Energy was acquired by Daylight Energy Trust on March 2010.

Mergers and Acquisitions have played a major role in increasing valuations per acre of land and per flowing barrel of oil. This should not be surprising as companies scramble to secure land in this area. There is intensive development on this play; hundreds of horizontal wells have been licensed for drilling in 2010. I expect further mergers and acquisitions along the way as juniors get taken out by bigger rivals.

The following list of companies with prospective Cardium oil land is provided by BeatingTheIndex.com with no guarantee as to the accuracy of the data (updated June 1, 2011):

Company Name Trading Symbol Cardium Land
PenWest Petroleum TSE:PWT 880 net sections
Bonavista Energy TSE:BNP 300 net sections
Peyto E&D TSE:PEY 288 net sections
PetroBakken TSE:PBN 240 net sections
NuVista Energy TSE:NVA 215 net sections
Encana Corporation TSE:ECA 200 sections
Angle Energy TSE:NGL 190 net sections
Talisman Energy TSE:TLM 150 net sections
ARC Resources TSE:ARX 126 net sections
Enerplus Resources TSE:ERF 123 net sections
Vermilion Energy TSE:VET 117 net sections
Bonterra Oil & Gas TSE:BNE 117 net sections
Daylight Energy TSE:DAY 112 net sections
Vero Energy TSE:VRO 111 net sections
NAL Energy TSE:NAE 110 gross sections
Bellatrix Exploration TSE:BXE 86 net sections
Crew Energy TSE:CR 67 net sections
Anderson Energy TSE:AXL 60 net sections
TriOil Ressources TSXV:TOL 56 net sections
Perpetual Energy TSE:PMT 55 net sections
Midway Energy TSE:MEL 52 net sections
SkyWest Energy TSXV:SKW 40 net sections
Whitecap Resources TSE:WCP 39 net sections
Pengrowth Corp. TSE:PGF 35 net sections
Hyperion Energy TSXV:HYX 35 net sections
Fairborne Energy TSE:FEL 32.4 net sections
Seaview Energy TSXV:CVU.A 22.8 net sections
Spartan Exploration TSE:SPE 24.4 net sections
Yangarra Resources TSXV:YGR 22 sections
Longview Energy TSE:LNV 17 net sections
Delphi Energy TSE:DEE 16.5 net sections
Cequence Energy TSE:CQE 15.5 net sections
Wildstream Exploration TSXV:WSX 15 net sections
Equal Energy TSE:EQU 11.25 net sections
Westfire Energy TSE:WFE 5-10 sections
Tamarack Valley Energy TSXV:TVE 11 net sections
Novus Energy TSXV:NVS 9.5 net sections
Avenex TSE:AVF 9 net sections
Petroglobe TSXV:PGB 9 net sections
Base Oil and Gas TSXV:BOG 6 net sections
Insignia Energy TSE:ISN 4.5 net sections
Open Range Energy TSE:ONR 0.8 net sections

This is by no means a complete list of companies operating in the Cardium trend since many companies are private and I might have missed other public companies. The net sections reported in the list are extracted from company websites/news releases or the latest presentations available. I decided to use the net sections when possible since it is more accurate. Of course this post does not encourage you to buy or sell any of the securities mentioned above, please do your own due diligence before buying or selling any securities. Please do not hesitate to contact me if you spot any mistakes in the data.

As we enter the second half of 2010 the industry will be ramping up activity in this area considerably. Well production rates are improving as more and more horizontal wells are drilled optimizing recoveries and fine tuning the process of drilling, casing and fraccing.

If you know of any qualifying public company not figuring on this list please feel free to contact me or post a comment and I will gladly add it. I will try to keep this table updated as developments occur since I will be using it as a reference in my research.