Cardinal Energy Ltd. Announces Closing of Equity Financing and Renewal of Credit Facility

CALGARY, ALBERTA--(Marketwired - June 15, 2016) - Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX:CJ) is pleased to announce that it has closed its previously announced public offering of 7,150,000 common shares through a syndicate of underwriters led by CIBC Capital Markets, and including FirstEnergy Capital Corp., RBC Capital Markets, National Bank Financial Inc., Scotiabank, GMP Securities L.P., BMO Capital Markets, Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd. (collectively, the "Underwriters") at a price of $9.35 per common share for gross proceeds of approximately $67 million (including the over-allotment option).

The net proceeds from the financing will initially be used to repay a portion of outstanding indebtedness under the Company's credit facilities, and will subsequently be redrawn to partially fund an increased drilling program, additional capital spending for facilities to further reduce operating costs, and to allow Cardinal to be opportunistic with potential acquisition opportunities.

Renewal of Credit Facility

Following the completion of the syndicate's semi-annual review in May, the credit facilities available to the Company were unchanged at $150 million and the borrowing base was amended to $250 million. At closing and after giving effect to the offering, Cardinal will have approximately $25 million drawn on its credit facilities.

About Cardinal Energy Ltd.

Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal's operations are focused in all season access areas in Alberta.

Note Regarding Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the offering. Although the use of proceeds is based on the current expectations of Cardinal's management, there may be circumstances where, for business reasons, a reallocation of funds may be necessary as may be determined at the Company's discretion and there can be no assurance as of the date of this press release as to how those funds may be reallocated. Although Cardinal believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Cardinal can give no assurance that they will prove to be correct. The forward looking statements contained in this press release are made as of the date hereof and Cardinal undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.