‘Appalachian Based Oil & Gas Producer Begins Operations in the Lone Star State’
Dublin OH, August 12, 2013 — (OTCQB: CEGX) Cardinal Energy Group, Inc. completes its acquisition of 618 acres and 41 oil wells on July 3, 2013 from HLA Interests, LLC., and officially begins operations in Shackelford County, Texas on Monday August 12, 2013. Cardinal subsequently retained the current operator, Piper Oil & Gas, to remediate the existing wells. The acquired lease acreage is called the Dawson-Conway Lease, which is located approximately 2 ½ hours northeast of Dallas. Cardinal has an 85% working interest in the field.
Timothy Crawford CEO of Cardinal remarks, “We are excited about Cardinal’s operation kickoff in the Lone Star State. The Dawson-Conway lease assignments are officially transferred to Cardinal. The rework schedule and operating agreement with Piper Oil & Gas is completed. We are now in operation in Texas. Based on the rework schedule the first 11 wells are being remediated over the next 14 days. They are anticipated to produce approximately 30 barrels of oil per day combined. The remaining 30 wells are being remediated over the following several months with completion of all 41 wells by the first week of December. We anticipate Cardinals revenue to increase significantly from this acquisition over the next several months”.
The remediated 41 wells are anticipated to produce 75 to 80 barrels of oil per day combined. Cardinal determines how many development wells will be drilled and completed on the additional lease acreage based on the results of 41 existing wells’ remediation.
About Shackelford County
Shackelford County is known for its prolific and famous Cook Ranch oil field. The Cook Ranch Field produces from a very permeable lens of Cook Sand of lower Permian or upper Pennsylvanian age, occurring at an average depth of 1,300 ft. The field was discovered in 1926 and has been operated with low pressure gas injection since July 1927, one of the first such projects in Texas. Oil recovery to the present has been in excess of 14,701,131 barrels of crude oil with an average of 1,013 barrels per acre-foot. The high permeability and uniformity of the reservoir were extremely favorable for this type of operation.
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.cardinalenergygroup.com.
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.