‘Purchase Expands Acreage by 235 Acres and Brings Total Aggregate Oil Production to 44 BOPD’
Dublin OH, March 7, 2014 – Cardinal Energy Group, Inc. (OTCQB: CEGX) announces that it has finalized the previously announced Purchase Sale Agreement to acquire the Stroybel-Broyles Lease located in Eastland County, Texas. The prospect was acquired from Hunting Dog Capital, LLC located in San Francisco, California. This prospect consists of 235 acres and 32 oil wells. This acquisition increases the Company’s acreage in Texas by 235 acres. This brings Cardinal’s aggregate acreage in Texas to 1,235 acres and aggregate oil production to 44 BOPD.
Timothy Crawford, CEO of Cardinal Energy remarks, “There are 32 wells on this prospect which we look forward to recompleting. This new prospect has 3 additional zones already behind pipe that have production potential. We intend to perforate these other zones and then co-mingle the new zones’ production with existing output to significantly increase overall production from each well. We also intend to drill additional development wells into the known producing formations on this lease. The Dawson-Conway lease reworks in Shackelford County, Texas have given us considerable insight into the formations underlying these two counties. We are confident that we can increase this prospect’s current production, cash flow and returns.”
Cardinal Energy now owns a total of 78 wells in Texas, 64 of which will be reworked or recompleted over the next several months. Management anticipates the aggregate production of these wells to exceed 400 barrels of oil per day (BOPD).
About Eastland County Texas*
There are 895 producing leases in Eastland County Texas with 9,386 drilled wells which produced 18,025 BBL of oil and 215,486 MCF of Gas in September 2013. (*Source: Texas-drilling.com)
CORRECTION to the recent release of 2-6-2014 re: Cardinal Energy Group, Inc. Completes Powers-Sanders Acquisition. The last sentence of the first paragraph should have read 41 BOPD, instead of 71 BOPD.
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.