DUBLIN OH--(Marketwired - Feb 4, 2014) - Cardinal Energy Group, Inc. (OTCQB: CEGX) announced that it has signed a Purchase and Sale Agreement to acquire the 385 acre Powers-Sanders Lease located in Shackelford County, Texas. The prospect is being purchased from Sabor X Energy Services, Inc. of Albany, Texas. The existing wells have been drilled to the Ellenberger formation, which has historically been a prolific formation in Shackelford County. There are a total of 5 wells on the prospect with 3 wells currently producing and 2 injection wells. The 3 wells are producing approximately 28 BOPD, which equates to 785 barrels per month.
Timothy Crawford, CEO of Cardinal Energy, stated, "We will rework the 3 producing wells to increase their production and then we will perforate the other zones in the formation behind pipe and comingle the production. It is estimated that we can drill and complete an additional 14 development wells on the prospect. We are thrilled by this acquisition as it adds to our existing acreage and production we currently have with the Dawson-Conway Lease, which consists of 41 wells and 618 acres and is also located in Shackelford County. We believe the Powers-Sanders prospect will boost shareholder value by increasing Company revenue over the course of this year as we expect to increase production on this lease to 150 BOPD before the end of 2014."
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.