‘Funding Provided by Maximilian Global through its subsidiary Keystone Energy’
ABILENE, Texas: June 22, 2015 – Cardinal Energy Group, Inc. (OTCQB: CEGX) (“Company”) is pleased to announce that it has secured long term project financing with Maximilian Global through the new company, Keystone Energy. Maximilian Global is a private equity firm based in New York and is controlled by Robert Levy. Maximilian Global formed Keystone Energy for the sole purpose of providing project financing to Cardinal through a joint venture approach. Cardinal initially owns a 5% stake in Keystone but has an option to acquire up to a 50% ownership stake in Keystone based on various oil & gas production benchmarks.
The first tranche of capital was received by the Company on Tuesday June 16th and was earmarked to complete the development of the Bradford A & B leases. The Company contributed a 10% Working Interest in the prospect to Keystone in exchange for a 5% ownership stake in Keystone and received $250,000 in cash from Keystone for its remaining 10% Working Interest in the properties. Maximilian Global has committed a total of $2,600,000 specifically for the Bradford A & B leases through Keystone Energy.
This first project financing is part of a long term plan by the Company and Maximilian Global to provide a revolving line of credit to Cardinal, up to a maximum aggregate amount of $25,000,000, through a strategic partnership approach to capitalize on select lease acquisition and oil and gas development opportunities with the aim to diversify and grow Cardinal’s reserves base.
“We look forward to a long and prosperous relationship with Robert Levy and his company Maximilian Global. We have been building towards this significant financial event since our inception and will continue the Company’s focus toward growth and the creation of long-term shareholder value”, stated Timothy Crawford, CEO of Cardinal Energy.
Crawford added, “The initial financing and commitment from Maximilian Global enables the Company to acquire qualified opportunities from target companies with distressed balance sheets, in addition to new lease acreage in prime locations for subsequent new drilling development. Our strategy has been carefully constructed to remain profitable during the industry price deflation by increasing our BOPD production and revenues via shallow plays utilizing conventional vertical drilling to minimize our lifting costs. The result, is a watershed moment for the Company as we build upon our record Q4 revenues with ample capital to continue our growth through this fiscal year”.
Robert Levy of Maximilian Global said, “We are impressed with the management team and historical performance at Cardinal Energy and look forward to assisting the company’s growth with efficient capital solutions. We further agree with Cardinal’s expansion strategy formulated to take advantage of new opportunities available as a result of the decline in the price of oil. Cardinal has avoided overleveraging itself and therefore is well-positioned to grow through additional economically viable asset acquisitions.”