SOURCE: Cardinal Energy Group, Inc.

Cardinal Energy Group, Inc.

January 28, 2015 08:56 ET

Cardinal Energy Group, Inc.: Fortune Lease Drilling Report

'3 New Wells Drilled and Completed and Infrastructure Installed'

DUBLIN, OH--(Marketwired - Jan 28, 2015) -  Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that its Fortune Lease is in its final completion stage. Electricity has been brought to the location and connected to the equipment. The tank batteries are installed and connected to the flow lines. The lease has been approved for natural gas hook-up. There are 2 wells completed in the Cooke Sandstone and 1 well in the deeper Caddo Lime. The initial production is approximately 30 BOPD gross. Cardinal is participating in 50% of the play situated on 310 acres.

Timothy Crawford, CEO of Cardinal, comments, "We are enthused that 3 new wells have been successfully drilled and completed. We expect the field's production to continue to increase once we streamline operations and commence selling our natural gas. We have good gas pressure downhole in our deeper well that is drilled into the Caddo Lime, which is a strong indication that its production will increase once the well stabilizes and its gas comes on-line. We will be monitoring this deep well and the other 2 shallower wells closely over the next several weeks."

Mr. Crawford adds, "This lease location is fairly remote, causing its initial completion to take a bit more time. Now that we have successfully accomplished installing the infrastructure, our development of the lease becomes much easier moving forward. We can drill and complete up to 6 additional wells on the acreage. As we monitor the field's overall oil and gas production over the next couple of months, we will refine our understanding of its geology. This insight enables us to pinpoint the sweet spots in the formation to more accurately determine the next locations for the 6 new wells."

About the Caddo Formation
The Marble Falls, Caddo, and the Mississippi Lime formations are shallow and found in numerous counties within the Fort Worth Basin, and are in the same geographic area as the prolific Barnett Shale play in North Texas. The vast majority of wells drilled to date have been vertical completions, typically providing high initial production, with lower drilling and completion costs. Shorter horizontal legs are showing great promise to date. Because of the limestone's porosity and natural fractures, drill and completion costs can be 35-50% of the typical unconventional well costs compared to other currently active plays in Texas, New Mexico and Oklahoma.

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

Contact Information