SOURCE: Cardinal Energy Group, Inc.

Cardinal Energy Group, Inc.

March 12, 2015 07:00 ET

Cardinal Energy Continues to Attract Interest With Tax Shelter Opportunity

Cardinal Investors Take Advantage of Intangible Drilling Cost Tax Deductions

DUBLIN, OH--(Marketwired - Mar 12, 2015) - Cardinal Energy Group, Inc. (OTCQB: CEGX) is taking advantage of the accelerated tax deductions for oil & gas investors through its Direct Participation Programs. While investors question energy investing overall, Cardinal is attracting them with its first such program called the Bradford Joint Venture. The Bradford Joint Venture offered a unique opportunity for accredited investors to directly participate as joint venture partners in a twenty-one (21) well oil drilling program, located in Shackelford County, Texas.

Cardinal engaged Pinnacle Energy Services, LLC, a professional engineering company, to perform a reserve analysis on the Bradford A & B Leases. Utilizing current market metrics of $50.00 per barrel of oil applied to the Reserve report and based on the current economic conditions, the $2,500,000 Bradford Joint Venture is currently worth $4,080,897, this translates into an immediate increase in value of almost 40%.

Timothy Crawford, CEO of Cardinal, comments, "Cardinal purchased the Bradford A and B lease to develop a drilling program for investors to realize significant tax savings against their regular income. The joint venture partner receives a substantial tax deduction in the first year which can be deducted against ordinary income. A unit investment of $25,000.00 increased in value in less than one year to $40,000.00 per the formula derived from Cardinal's recent reserve report on the Bradford lease. If you are in the highest tax bracket you would have an $8,000.00 accelerated tax deduction for every $25,000.00 joint venture unit owned. The reserve report indicates that at today's oil pricing of approximately $50.00 per barrel, a unit's distribution from its production income would approximately double your money when including the intangible drilling cost tax deductions."

Mr. Crawford comments further, "A water-flood program is planned for the Bradford A & B Lease. The Reserve Report does not take into account any additional production that may be derived from the water-flood plan."

About the Tannehill Sandstone
According to a 1956 Geological report on the AAPG Data pages web site by James E. Russell regarding the Tannehill Petroleum Company Newell Waterflood Project Shackelford County, Texas, the Abstract states: Waterflooding the Tannehill sandstone underlying the Newell Lease in Shackelford County, Texas, can be considered a success. Pilot operations were commenced in May, 1952 by the Tannehill Petroleum Company. Performance of the Pilot Flood was encouraging and a decision to proceed with full-scale development was made early in 1954. By the end of 1956 the project had been extended to cover 393 acres and presently includes productive acreage on the Newell, Moberly and Jeter Leases. Production was increased as a result of water injection from 20 barrels per day to a peak rate of 498 barrels per day or 25 times the rate under primary operations.

Forward Looking Statements
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Cardinal Energy Group, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our beliefs concerning our ability to increase the rate of oil and gas production, and the expected demand, pricing and operating results for our oil and gas operations.

About Cardinal Energy Group, Inc.
Cardinal Energy Group, Inc. is a U.S. producer of oil and natural gas within the United States. The Company is headquartered in Dublin, Ohio and has its regional operations office located in Albany, Texas. We are an environmentally responsible oil and gas Company. Cardinal focuses on known formations that have significant proven reserves remaining that can be produced economically. Cardinal targets fields with wells that may need remediation due to neglect or undercapitalization. We select prospects that offer a strong up-side for production. The upside we seek in a prospect is threefold -- it must have the potential to be restarted or have its current production increased using newer technology and remediation methods and; it must also have additional lease acreage which can be further developed by completing development wells adjacent to existing producing wells, or it must be an overlooked or distressed prospect in the explosive shale formations like the Permian Basin or Eagle Ford shale. Cardinal exploits these undervalued assets by acquiring a majority working interest in the prospect and then applies the Company's calculated development plan. Cardinal also seeks acquisitions of over-leveraged companies when there is a clear upside from their purchase based on strong commodity prices. The Company operates throughout the Continental United States. More information on Cardinal Energy Group, Inc. is available at http://www.cardinalenergygroup.com/.

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