‘Initial 14 Well Drilling Program Ready to Begin, as Waterflood is initiated’

Dublin OH, August 18, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that it has received its drilling permits for the Bradford Lease in Shackelford County from the Texas Railroad Commission. Cardinal will drill and complete 14 new wells in the Tannehill Sand Formation.

Timothy Crawford, CEO of Cardinal comments, “We have received the first nine drilling permits for our Bradford Leases. These permits allow us to begin our drilling program. The area has been surveyed and mapped by a geologist providing us a solid plan of attack to increase our oil production in the Albany area. The field already has 7 oil wells completed into the reliable Tannehill Sand Formation in Shackelford County. When the new drilling program is complete we will have drilled 14 new wells for a total of 20 producing wells and one injector well. We are in the final stages of completing our water flood using one of the existing wells as an injector. We are initiating the water flood early as it will take at least a month to feel its impact the new wells and the wells that are presently producing. We plan to have the drilling program completed over the next few months from the time we spud the first well on the lease, which is planned for this week. The Bradford lease is adjacent to our Powers Sanders lease, which makes this play all the more economical to operate and pump for our workforce. We anticipate robust production from this lease for years to come.”

The following is a 1956 abstract geological article contribution by James E. Russell regarding waterfloods in the Tannehill:

Tannehill Petroleum Company, Newell Waterflood Project Shackelford County, Texas

Waterflooding the Tannehill sandstone underlying the Newell Lease in Shackelford County, Texas, can be considered a success. Pilot operations were commenced in May, 1952 by the Tannehill Petroleum Company. Performance of the Pilot Flood was encouraging and a decision to proceed with full-scale development was made early in 1954. By the end of 1956 the project had been extended to cover 393 acres and presently includes productive acreage on the Newell, Moberly and Jeter Leases. Production was increased as a result of water injection from 20 barrels per day to a peak rate of 498 barrels per day or 25 times the rate under primary operations.

Oil recovery as a result of water injection has amounted to 286, 446 barrels as of December 31, 1956. Engineering estimates indicate a recovery of approximately 800,000 barrels as a direct result of water flooding the area presently developed. This recovery is in addition to that obtained through primary production methods.