DUBLIN, OH--(Marketwired - Feb 12, 2014) - Cardinal Energy Group, Inc. (OTCQB: CEGX) announced that it has signed a purchase and sale agreement to acquire the Stroybel-Broyles lease located in Eastland County, Texas from Hunting Dog Capital, LLC., of San Francisco, California. The prospect has 235 acres with 32 wells including 3 active wells and 2 injection wells. The active wells are producing 3 BOPD or 90 barrels per month.
"This prospect is an ideal acquisition for us. Most of the wells we target in Texas were previously completed during the drilling boom in the 1980's, yet there is still a significant amount of oil in the reservoir and equipment preserved on site," stated Timothy Crawford, CEO of Cardinal Energy. "We are using our experience gained from reworking our Dawson-Conway lease wells to apply our remediation techniques with other acquired prospects in the vicinity. Our strategy is to rework the three producing wells at Stroybel-Broyles to increase their production in the Marble Falls formation, and then perforate the zones in the other formations behind pipe and aggregate the production. We also plan to drill and complete an additional ten development wells on the prospect in its deeper formations."
This acquisition adds to the Company's existing acreage and oil production located in the Dawson-Conway lease, which consists of 41 wells and 618 acres, currently producing 43 BOPD. The Company also recently announced the acquisition of the Powers-Sander lease which consists of 5 wells and 385 acres, currently producing 28 BOPD. Both of these leases are located in Shackelford County, Texas. The new Stroybel-Broyles lease is located approximately 50 miles from Shackelford County, Texas.
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.