‘Wells to be Drilled to Prolific Caddo Formation’
Dublin OH, September 2, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that it has completed the acquisition of the Fortune Lease. Cardinal will participate in 50% of the play on 310 acres. The lease has one un-completed, plugged well that will be re-entered and re-drilled to the prolific Caddo formation. Activity should commence on or about September 15, 2014. The plan is to continue the development of the lease by drilling 3 to 5 new wells into the various other formations on the lease.
Timothy Crawford, CEO of Cardinal, comments, “This target has been recognized by utilizing geophysical and seismic data. The formation shows a very strong amplitude anomaly. This re-entry is up dip from a known producer that had an initial production of 150 BOPD. We are looking forward to the development of this prospect and its potential to add to our daily production.”
The following is a geological abstract from the site http://jackcountydeals.weebly.com/ regarding the Caddo and the other associated formations:
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.
There has been a rapid movement of Majors and Large Independents focusing on developing and exploring these areas. This is a result of wells potentially producing an oil ratio in excess of 50% gross production as well as having low drilling costs and high rates of return.
Since 2011, Majors have acquired tens of thousands of net acres of Marble Falls/Caddo /Mississippi Lime and continue to increase acreage/drill locations, including the expansion of all resource plays with successful “tight hole” wells distanced away from early “core” areas.
The Marble Falls is an oil-rich Pennsylvanian-age porous limestone formation that is deposited above the Barnett Shale and can form aberrational pinnacle reefs at depths less than 5000 feet, reaching a thickness of 400+ feet. These resource plays create the opportunity for large reservoir targets with extraordinary hydrocarbon deposits within shoal basins; they have produced in excess of 100,000 BOE per well with additional High BTU gas adding potentially 500mm -1.0 B of production per well.
More information on Cardinal Energy Group, Inc. is available at www.cegx.us.