‘CEGX reports near record quarterly performance’
Abilene TX, August 25, 2015 — Cardinal Energy Group, Inc. (“Cardinal Energy” or “the Company”) (OTCQB: CEGX) is pleased to report its best “EBITDA” (earnings before interest, taxes, depreciation and amortization) quarter since the company was founded. EBITDA for the quarter ended June 30, 2015 was $541,491 compared to a negative $925,898 for the quarter ended June 30, 2014. Operating revenues surged to $660,444 in the current period compared to $59,920 for the comparable period in 2014. The increase in operating revenues primarily reflects increased contract development activities at the Bradford “A” and “B” leases. The increase in operating revenues occurred despite a dip in crude oil sale revenues which reflect lower crude oil prices (realized prices averaged $48.94 BBL in the second quarter of 2015 versus $91.77 BBL in the second quarter of 2014) and lower production volumes due to mechanical and down-hole issues at some of our recently developed properties in north-central Texas.
Operating income (operating revenues less operating expenses) for the second quarter of 2015 increased to $95,792 compared to an operating loss of $936,937 recorded in the second quarter of 2014 and represents the second highest level of operating income in the Company’s history. The increase in operating income not only reflects higher operating revenues but also reflects a decrease in operating expenses which reflects the Company’s decision to shift its focus from re-working of existing wells to in-field development drilling on its Texas oil and gas properties.
The Company’s net comprehensive loss narrowed to $316,847 or $0.01 per share in the second quarter of 2015 compared to a net comprehensive loss of $1,193,172 or $0.03 per share for the comparable period of 2014. The improvement reflects not only the operating factors previously cited but also reflects a reduction in administrative and general costs as the Company moved to contain home office and public company administrative costs. Higher interest related costs due to the higher level of debt outstanding partially offset these improvements. We will be announcing an earnings call in the near future.
The following are summarized comments from Cardinal’s CEO/President and Chief Operating Officer concerning the second quarter 2015 results:
Timothy W. Crawford, CEO of Cardinal “We are very pleased to announce to all of our loyal shareholders that we have had one of our best earnings quarters to date since our inception even in this downturned market. The increase is attributed the success of our drilling programs coupled with our success in keeping our lifting and finding costs down due to our shallow oil pursuit. We intend to keep the momentum by pursuing additional oil drilling programs for highly accredited investors that need tax relief against their ordinary income. In addition, we are pursuing other opportunities that have economical finding and lifting costs that are coming on to the market due to over-leveraged companies shedding their core assets to meet their debt obligations. We have a couple of such opportunities currently that are in various stages of due diligence and negotiation. They will be announced to the public when they are consummated.”