‘3 new wells drilled and completed and infrastructure installed’
Dublin OH, January 28, 2015 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that its Fortune Lease is in its final completion stage. Electricity has been brought to the location and connected to the equipment. The tank batteries are installed and connected to the flow lines. The lease has been approved for natural gas hook-up. There are 2 wells completed in the Cooke Sandstone and 1 well in the deeper Caddo Lime. The initial production is approximately 30 BOPD gross. Cardinal is participating in 50% of the play situated on 310 acres.
Timothy Crawford, CEO of Cardinal comments, “We are enthused that 3 new wells have been successfully drilled and completed. We expect the field’s production to continue to increase once we streamline operations and commence selling our natural gas. We have good gas pressure downhole in our deeper well that is drilled into the Caddo Lime, which is a strong indication that its production will increase once the well stabilizes and its gas comes on-line. We will be monitoring this deep well and the other 2 shallower wells closely over the next several weeks.”
Mr. Crawford adds, “This lease location is fairly remote, causing its initial completion to take a bit more time. Now that we have successfully accomplished installing the infrastructure, our development of the lease becomes much easier moving forward. We can drill and complete up to 6 additional wells on the acreage. As we monitor the field’s overall oil and gas production over the next couple of months, we will refine our understanding of its geology. This insight enables us to pinpoint the sweet spots in the formation to more accurately determine the next locations for the 6 new wells.”
About the Caddo Formation
The Marble Falls, Caddo, and the Mississippi Lime formations are shallow and found in numerous counties within the Fort Worth Basin, and are in the same geographic area as the prolific Barnett Shale play in North Texas. The vast majority of wells drilled to date have been vertical completions, typically providing high initial production, with lower drilling and completion costs. Shorter horizontal legs are showing great promise to date. Because of the limestone’s porosity and natural fractures, drill and completion costs can be 35-50% of the typical unconventional well costs compared to other currently active plays in Texas, New Mexico and Oklahoma.