SOURCE: Cardinal Energy Group, Inc.
DUBLIN OH--(Marketwired - Mar 7, 2014) - Cardinal Energy Group, Inc. (OTCQB: CEGX) announces that it has finalized the previously announced Purchase Sale Agreement to acquire the Stroybel-Broyles Lease located in Eastland County, Texas. The prospect was acquired from Hunting Dog Capital, LLC located in San Francisco, California. This prospect consists of 235 acres and 32 oil wells. This acquisition increases the Company's acreage in Texas by 235 acres. This brings Cardinal's aggregate acreage in Texas to 1,235 acres and aggregate oil production to 44 BOPD.
Timothy Crawford, CEO of Cardinal Energy remarks, "There are 32 wells on this prospect which we look forward to recompleting. This new prospect has 3 additional zones already behind pipe that have production potential. We intend to perforate these other zones and then co-mingle the new zones' production with existing output to significantly increase overall production from each well. We also intend to drill additional development wells into the known producing formations on this lease. The Dawson-Conway lease reworks in Shackelford County, Texas have given us considerable insight into the formations underlying these two counties. We are confident that we can increase this prospect's current production, cash flow and returns."
Cardinal Energy now owns a total of 78 wells in Texas, 64 of which will be reworked or recompleted over the next several months. Management anticipates the aggregate production of these wells to exceed 400 barrels of oil per day (BOPD).
About Eastland County Texas*
There are 895 producing leases in Eastland County Texas with 9,386 drilled wells which produced 18,025 BBL of oil and 215,486 MCF of Gas in September 2013. (*Source: Texas-drilling.com)
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 ability to obtain financing and close on the acquisition of the oil and gas leases and property, 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 based in Dublin, Ohio. 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 twofold -- 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. 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.