‘Acquisition set stage for Cardinal’s revenue growth’
DUBLIN OH, July 11, 2013 / PRNewswire: Cardinal Energy Group, Inc. (OTCQB: CEGX) signed a Definitive Agreement on July 3, 2013 completing its acquisition of the Dawson-Conway Leases located in Shackelford County in Central West Texas. According to the terms of the agreement Cardinal now has an 85% working interest in the 618 acre field. There are currently 46 wells and one injection well located within the field. Cardinal will retain the services of the present operator who anticipates that remediating 11 of the wells over the next three weeks will increase their current production significantly. 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 bbl of crude oil with an average of 1,013 bbl per acre-foot. The high permeability and uniformity of the reservoir were extremely favorable for this type of operation.
The Cook Ranch Field is the largest of a number of relatively small, shallow producing areas near Albany, in Shackelford County, Texas. This field is one of the first to be operated by gas injection in Texas and probably the most successful low pressure gas injection project ever attempted.
Timothy Crawford, CEO and Director of Cardinal Energy remarks, “This is our first oil producing acquisition outside the Appalachian Basin and is an ideal field to execute our remediation strategy. The field has 47 existing wells which produce about 30 barrels of oil per month. We anticipate reworking the first 11 wells over the next couple of weeks to bring their production up to 10 barrels of oil per day. We will continue reworking the other wells systematically to increase their production over the next several weeks”.
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.cardinalenergygroup.com.