‘Purchase Expands Acreage by 385 Acres and Brings Total Aggregate Oil Production to 41 BOPD’
Dublin OH, March 6, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that it has finalized the previously announced Purchase Sale Agreement to acquire the Powers-Sanders Lease located in Shackelford County, Texas. This prospect contains 385 acres and 5 producing oil wells. Combined with the Dawson-Conway lease this acquisition increases the Company’s acreage by approximately 385 acres and production by 31 BOPD. This brings the total aggregate acreage in Texas to 1,003 acres, 46 wells and aggregate oil production to 71 BOPD.
“This acquisition significantly expands our production, exiting wells and the prospective development well targets in our core Texas market,” stated Timothy Crawford, CEO of Cardinal Energy. “According to our plan we will rework the producing wells to increase their production as we explore the other zones overlying the producing formation on this prospect. There are 3 other zones behind pipe that have production potential by perforating the other zones and then co-mingling the new zone production with each well’s existing output to significantly increase each well’s overall production. We also intend to drill additional development wells into the known producing formations.With our experience gained from the Dawson-Conway lease reworks in Shackelford County, we are confident in our ability to increase the current production, cash flow and returns on this prospect.
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.