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Pump jacks pump oil in Alberta at an Encana well on May 12, 2014.
Pump jacks pump oil in Alberta at an Encana well on May 12, 2014.
(Todd Korol For The Globe and Mail)

Cardinal Energy snaps up oil assets, issues stock

Cardinal Energy Ltd., a dividend-paying junior oil producer, has snapped up assets in central Alberta for $165-million, a deal it is funding with an equity issue.

Cardinal also said it is raising its monthly payout to investors, citing strong commodity prices, lower cost and higher output.

The company, which went public in 2013, is acquiring assets in the Wainwright area of Alberta that produce 1,900 barrels of oil a day. Proved plus probable reserves are pegged at 9.8 million barrels.