‘20 new wells to be drilled and completed over the next three months’
Dublin OH, January 7, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) announces that it has acquired the Bradford “West”. The new prospect is comprised of 200 acres and is located adjacent and to the west of Cardinal’s existing Bradford field. The prospect was acquired for $20,000 on December 31, 2014. The lease is also located within a couple of miles of Cardinal’s Albany, Texas field operations facility in Shackelford County, Texas. Cardinal is in the process of securing drilling permits for the 20 new locations that the geologist has identified in the formation. Cardinal pursued this new Bradford “West” lease largely because of the success of the first Bradford Lease acquired in 2014.
Timothy Crawford, CEO of Cardinal comments, “We are excited about this new Bradford West Lease and its potential for good production. It is adjacent, and to the west, of our existing Bradford Lease where we are winding up our successful 21 well drilling program. We have learned a lot from drilling and completing most of the 21 wells on our original Bradford lease. The drilling activity on the original Bradford has given us good insight into the Lease’s geological formation. It has helped us to determine the sweet spots in the formation overall, making our well locating and drilling more efficient and accurate. This new field will also be water flooded to enhance its production considerably. We anticipate the new wells that we are planning to drill starting this month, to have as good or better production than the original Bradford Lease where we have drilled and are winding up completion of its 21 wells. The new wells on the original Bradford have come on-line with primary production of approximately 5 BOPD per well without the water flood. The Bradford West wells are also shallow and in keeping with our strategy for 2015 to pursue shallow production in Central Texas due to the cost efficiencies associated with drilling and completing these types of wells. Our shallow well strategy allows us to be profitable even with oil prices well below $50 per barrel because our lifting fees are approximately $12.50 per barrel.”
Mr. Crawford adds, “We are seeing that the price downturn is providing new opportunity for Cardinal. It is now easier and less expensive to get rigs, permits, laborers and materials; and our other service providers are more inclined to bargain with us, which further reduces our drilling and completion cost. We are also seeing that acreage is becoming more readily available at deeply discounted prices due to the fact that some of the mid-majors and overleveraged producers are shedding assets to keep their businesses viable.”
More information on Cardinal Energy Group, Inc. is available at www.cegx.us.
About the Tannehill
Abstract by Geologist James E. Russell regarding water-flood results in the Tannehill Sandstone: Waterflooding the Tannehill sandstone underlying the Newell Lease in Shackelford County, Texas, can be considered a success. Pilot operations were commenced in May, 1952 by the Tannehill Petroleum Company. Performance of the Pilot Flood was encouraging and a decision to proceed with full-scale development was made early in 1954. By the end of 1956 the project had been extended to cover 393 acres and presently includes productive acreage on the Newell, Moberly and Jeter Leases. Production was increased as a result of water injection from 20 barrels per day to a peak rate of 498 barrels per day or 25 times the rate under primary operations.
Oil recovery as a result of water injection has amounted to 286, 446 barrels as of December 31, 1956. Engineering estimates indicate a recovery of approximately 800,000 barrels as a direct result of water flooding the area presently developed. This recovery is in addition to that obtained through primary production methods.