Mr. Cody Kwong reports

CARDINAL ENERGY LTD. PROCEEDING WITH REFORD 2 EXPANSION AND ANNOUNCES MONTHLY DIVIDEND FOR SEPTEMBER

Cardinal Energy Ltd. is advancing the expansion of its Reford 2 SAGD (steam-assisted gravity drainage) project that will increase nameplate capacity to 6,000 barrels per day (bbl/d).

Expanding Reford 2 SAGD project to 6,000 bbl/d

With a favourable crude oil price environment meaningfully outpacing the company's 2026 budget forecast, Cardinal is excited to announce that it will be proceeding with the expansion of the Reford 2 SAGD project. The expansion will now target elevated nameplate volumes of 6,000 bbl/d, increased from the original plan of 4,250 bbl/d.

The incremental cost of this expansion is expected to be approximately $40-million, implying an attractive capital deployment efficiency of approximately $23,000 per flowing barrel. Most of the expenditures attached to this expansion are forecast to be incurred in 2027. Under this increased scope, Cardinal now expects to deliver top-tier, full-cycle, capital efficiencies of $30,000 per flowing barrel, or less, with Reford 2, which replicates the performance achieved with Reford 1.

The election to proceed with the Reford 2 expansion at this juncture allows the company to maintain the original schedule, where first steam is anticipated in the summer of 2027 and the ramp to nameplate is expected in early Q4 (fourth quarter) 2027.

At Reford 1, Cardinal has recently achieved the significant milestone of producing over two million barrels of oil from this project since first steam on Aug. 21, 2025. Production from this asset continues to outperform expectations with year-to-date average volumes of over 6,500 bbl/d, which exceeds nameplate capacity of 6,000 bbl/d.

Based on higher-than-forecasted adjusted funds flow in the first half of 2026 and the current WTI (West Texas Intermediate) oil price strip outlook, Cardinal is on pace to exit 2026 undrawn on its $275-million credit facility.

Investor marketing and updated presentation

Cardinal is scheduled to attend the Peters & Co. Ltd. 30th Annual Energy Conference in Toronto, Canada, on Sept. 15, 2026, to Sept. 17, 2026, in addition to the TD Cowen 3rd Annual Energy Conference in Austin, Tex., on Sept. 23, 2026, to Sept. 25, 2026.

The company's updated corporate presentation is on its website.

Monthly dividend confirmation for September

Cardinal confirms that its September dividend of six cents per common share will be paid on Oct. 15, 2026, to shareholders of record on Sept. 30, 2026. The board of directors of Cardinal has declared the dividend payable in cash. This dividend has been designated as an eligible dividend for Canadian income tax purposes.

About Cardinal Energy Ltd.

Cardinal is a Canadian oil and natural gas production company with operations focused on low-decline sustainable oil production in Western Canada. The company's portfolio of conventional and SAGD projects offers a complementary low-decline, long-life resource base that is ideally suited to sustain Cardinal's commitment to meaningful dividend returns to shareholders.

We seek Safe Harbor.