DUBLIN, OH--(Marketwired - May 8, 2014) - Cardinal Energy Group, Inc. ("Cardinal Energy" or "the Company") (OTCQB: CEGX) announced that it has completed the first sale of oil from its Dawson-Conway, Powers-Sanders and Stroebel-Broyles prospects in Texas. The three prospects yielded 560 barrels of "light" (API 35-38 gravity) oil since Cardinal's recompletion program resumed the fields' production. The Company acquired its initial 85% working interest in the Dawson-Conway leases in July 2013 and acquired the remaining 15% working interest plus its interests in the Powers-Sanders and Stroebel-Broyles leases in March of 2014.The Company began to address the various issues with infrastructure and compliance with the Texas Railroad Commission regulations when it took over operatorship of all of these properties in March 2014.
"This is a beginning. We have sold our first oil since the leases have been transferred to us. Our first oil sale marks a milestone in Cardinal's growth and this is the first production sale report from our wholly owned subsidiary, CEGX of Texas, LLC.," Timothy Crawford, CEO of Cardinal Energy states. "We have been working hard with the Texas Railroad Commission to remedy some of the issues with our prospects in order to bring them into full compliance with all applicable regulations. In our quest to be good environmental stewards, we have made the necessary repairs to the fields' infrastructure as well as having performed the required well testing to the satisfaction of the Railroad Commission. Moving forward we plan to report our combined production each month from our prospects. We are utilizing new technology and well completions which are providing good results in our quest to recover the remaining reserves in the formations. We are pleased with the outcome of our efforts in Texas so far and plan to continue the development, repair and upgrading of our prospects there."
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.