SOURCE: Cardinal Energy Group, Inc.

Cardinal Energy Group, Inc.

March 17, 2015 06:00 ET

Cardinal Energy Executes $2.5M Credit Line Term Sheet

'Funds Are Earmarked for Acquisitions and New Drilling on Leases'

DUBLIN, OH--(Marketwired - Mar 17, 2015) - Cardinal Energy Group, Inc. (OTCQB: CEGX) has executed a term sheet for a $2,500,000 revolving credit line from a prominent New York based Private Equity Firm and expects to close and draw down on the facility within 30 days. The credit facility has been earmarked to drill and complete wells on the Bradford A & B Leases and the Bradford West Lease.

"This credit facility will be used to drill and complete the last 4 of 21 wells on our Bradford A & B Leases, of which Cardinal will own 47% the Leases. We will also use the credit facility to drill and complete 20 new wells on our recently acquired Bradford West Lease that is adjacent and to the West of our Bradford A & B Leases," Timothy Crawford, CEO of Cardinal comments. "We have been able to keep our finding and lifting costs below $15 per barrel drilling and completing these shallow oil wells making them very profitable with lower oil prices. We also have the ability to use the credit facility to purchase additional acreage for new drilling prospects. We are pleased with the terms and conditions of this credit facility as it positions us to take advantage of the distressed assets that are coming onto the market at deep discounts from companies with weak or weakened balance sheets due to the downturn."

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 Eagleford 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 www.cegx.us.

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