Abilene, Texas April 18, 2017 – Cardinal Energy Group, Inc (“Cardinal Energy” or “the Company”) (OTCQB: CEGX) announces the acquisition of EOI Eagle Operating, Inc (“Eagle”) assets. The Company and Eagle formally executed the definitive agreement to acquire the assets of EOI Eagle Operating, Inc located in Frisco, Texas on April 18, 2017. The Company issued 1,000,000 shares of the Series B Preferred stock and a note for $250,000 to acquire the assets of EOI Eagle Operating, Inc.
Timothy W. Crawford, CEO of Cardinal Energy stated, “We are pleased to announce the acquisition of Eagle’s assets as these assets will generate significant revenues to the Company. However, the jewel of this acquisition is the many years of experience that Paul Carlisle brings to Cardinal”. Paul will be appointed by the Board of Directors in the next 30 days to the position of President and Chief Operating Officer of the Company. Paul will oversee all of the Company’s day to day operations in the field and will report to the Company’s CEO and Board of Directors.
Paul Carlisle, President and Owner of EOI Eagle Operating, Inc commented, “This is a very exciting time for all of us involved with the Cardinal Energy Group. I am proud to accept my new role as President and Chief Operating Officer of Cardinal. I feel the company is strategically positioned as the result of the addition of Eagle’s existing leases and new equipment to fully develop all of the existing properties held by Cardinal Energy Group and the additional leases which will be acquired in the near future as the result of the Company’s current capital raise.
Our focus will be to first re-establish production on the wells with the lowest cost of returning to full operation. The newly acquired leases from Eagle are located adjacent to proven oil fields with significant current production and have significant potential for increased levels of crude oil production.
Historically when crude oil and natural gas prices move lower the production of oil and natural gas declines due to the deferral of necessary remedial well work. This simply reflects the fact that while the resource is not going anywhere the cost to continue to bring it to the surface has increased in terms of constant dollars thereby reducing operating margins. Now that commodity prices have stabilized we expect to bring these leases back on line quickly. With our low development and lifting costs we plan to capitalize on this opportunity by bringing additional wells online to increase production levels and to extend the economic lives of these properties.
During this time period, we will also be performing infill development drilling to establish new production and proven reserves. Cardinal’s acquisition of two complete service rigs will greatly reduce potential delays normally associated with completion work. These service rigs will also allow us to also begin to work for third parties as time and development plans permit. Working out of our centrally located yard in Graham, Texas we can easily service wells located within a 150-mile radius. With the numerous trucks, trailers, and heavy equipment being added to Cardinal’s fleet we fully expect to hit the ground running and have the resources necessary to capitalize on the exciting opportunities at hand.”