SOURCE: Cardinal Energy Group, Inc.

January 07, 2015 08:32 ET

Cardinal Energy Group, Inc. Acquires Bradford West

20 New Wells to Be Drilled and Completed Over the Next Three Months

DUBLIN OH--(Marketwired - Jan 7, 2015) - Cardinal Energy Group, Inc. (OTCQB: CEGX) announces that it has acquired the Bradford "West". The new prospect is comprised of 200 acres and is located adjacent and to the west of Cardinal's existing Bradford field. The prospect was acquired for $20,000 on December 31, 2014. The lease is also located within a couple of miles of Cardinal's Albany, Texas field operations facility in Shackelford County, Texas. Cardinal is in the process of securing drilling permits for the 20 new locations that the geologist has identified in the formation. Cardinal pursued this new Bradford "West" lease largely because of the success of the first Bradford Lease acquired in 2014.

Timothy Crawford, CEO of Cardinal, comments, "We are excited about this new Bradford West Lease and its potential for good production. It is adjacent, and to the west, of our existing Bradford Lease where we are winding up our successful 21 well drilling program. We have learned a lot from drilling and completing most of the 21 wells on our original Bradford lease. The drilling activity on the original Bradford has given us good insight into the Lease's geological formation. It has helped us to determine the sweet spots in the formation overall, making our well locating and drilling more efficient and accurate. This new field will also be water flooded to enhance its production considerably. We anticipate the new wells that we are planning to drill starting this month, to have as good or better production than the original Bradford Lease where we have drilled and are winding up completion of its 21 wells. The new wells on the original Bradford have come on-line with primary production of approximately 5 BOPD per well without the water flood. The Bradford West wells are also shallow and in keeping with our strategy for 2015 to pursue shallow production in Central Texas due to the cost efficiencies associated with drilling and completing these types of wells. Our shallow well strategy allows us to be profitable even with oil prices well below $50 per barrel because our lifting fees are approximately $12.50 per barrel."

Mr. Crawford adds, "We are seeing that the price downturn is providing new opportunity for Cardinal. It is now easier and less expensive to get rigs, permits, laborers and materials; and our other service providers are more inclined to bargain with us, which further reduces our drilling and completion cost. We are also seeing that acreage is becoming more readily available at deeply discounted prices due to the fact that some of the mid-majors and overleveraged producers are shedding assets to keep their businesses viable."

More information on Cardinal Energy Group, Inc. is available at www.cegx.us.

About the Tannehill
Abstract by Geologist James E. Russell regarding water-flood results in the Tannehill Sandstone: 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.

Oil recovery as a result of water injection has amounted to 286,446 barrels as of December 31, 1956. Engineering estimates indicate a recovery of approximately 800,000 barrels as a direct result of water flooding the area presently developed. This recovery is in addition to that obtained through primary production methods.

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 expectations concerning our oil and gas production rates, 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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