Dawson-Conway, Stroebel-Broyles and Powers-Sanders Production
Dublin OH, May 8, 2014 — Cardinal Energy Group, Inc. (“Cardinal Energy” or “the Company”) (OTCQB: CEGX) announced that it has completed the first sale of oil from its Dawson-Conway, Powers-Sanders and Stroebel-Broyles prospects in Texas. The three prospects yielded 560 barrels of “light” (API 35-38 gravity) oil since Cardinal’s recompletion program resumed the fields’ production. The Company acquired its initial 85% working interest in the Dawson-Conway leases in July 2013 and acquired the remaining 15% working interest plus its interests in the Powers-Sanders and Stroebel-Broyles leases in March of 2014.The Company began to address the various issues with infrastructure and compliance with the Texas Railroad Commission regulations when it took over operatorship of all of these properties in March 2014.
“This is a beginning. We have sold our first oil since the leases have been transferred to us. Our first oil sale marks a milestone in Cardinal’s growth and this is the first production sale report from our wholly owned subsidiary, CEGX of Texas, LLC.”, Timothy Crawford, CEO of Cardinal Energy states, “We have been working hard with the Texas Railroad Commission to remedy some of the issues with our prospects in order to bring them into full compliance with all applicable regulations. In our quest to be good environmental stewards, we have made the necessary repairs to the fields’ infrastructure as well as having performed the required well testing to the satisfaction of the Railroad Commission. Moving forward we plan to report our combined production each month from our prospects. We are utilizing new technology and well completions which are providing good results in our quest to recover the remaining reserves in the formations. We are pleased with the outcome of our efforts in Texas so far and plan to continue the development, repair and upgrading of our prospects there.”