‘Cardinal to acquire a 100% working interest in nine producing oil wells in South Central Kentucky’
DUBLIN OH, January 31, 2013 / PRNewswire: Cardinal Energy Group, Inc (CEGX) announces the signing of a Binding Letter of Intent with Tarcat, Inc. The Binding Letter of Intent Provides for the purchase of a 100% working interest in existing well numbers 1, 3, 8, 9, 13, 20, 25, TD#1, TD#2 located on Tracts 4 and 5 of the property known as the Froggett Farm located in South Central Kentucky. Some of the wells on this lease have a documented history of up to 100 bbls.
The agreement set forth by the Binding Letter of Intent also provides for a First Right of Refusal to secure the Working Interest on all additional wells drilled on Tracts 4 and 5 of the Froggett Farm. Approximately 20 future wells can be drilled on Tracts 4 and 5. The purchase includes all ancillary gathering equipment, including pipe, tanks and pump jacks.
Tarcat Inc. and Cardinal Energy Inc. are completing a Definitive Material Agreement that puts forth the Terms and Conditions of the final sale. The Final Purchase Agreement is anticipated to be completed by February 15, 2013.
Timothy W. Crawford, the President and CEO of Cardinal Energy Group, Inc. remarks, “An article from June 30, 1986 in the Kentucky local paper states that Wilco Energy and Summit Petroleum discovered a new oil field in Metcalf County, in the Knox Formation with a new well called J. Rowe No. 1. The well came in at 5 barrels of oil per hour. As of the printing of the article the J. Rowe No. 1 well was producing 120 barrels of oil per day. The article stated that sources close to Wilco Energy and Summit Petroleum indicated that after a two year study of the geological structures that the area compares in many ways to the Exie-South and Pickett Chaple fields. These two fields, as of the date of the June 30, 1986 had been productive since the mid-seventies, producing in excess of 500,000 bbls.”
Forward Looking Statements
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Cardinal Energy Group, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations concerning our ability to obtain financing and close on the acquisition of the oil and gas leases and property, our beliefs concerning our ability to increase the rate of oil and gas production, and the expected demand, pricing and operating results for our oil and gas operations.
About Cardinal Energy Group, Inc.
Cardinal Energy Group, Inc. is a U.S producer of oil and natural gas within the United States. The Company is based in Dublin, Ohio. Cardinal focuses on known formations that have significant proven reserves remaining that can be produced economically. Cardinal targets fields with wells that may need remediation due to neglect or undercapitalization. We select prospects that offer a strong up-side for production. The upside we seek in a prospect is twofold – it must have the potential to be restarted or have its current production increased using newer technology and remediation methods and; it must also have additional lease acreage which can be further developed by completing development wells adjacent to existing producing wells. Cardinal exploits these undervalued assets by acquiring a majority working interest in the prospect and then applies the Company’s calculated development plan. Cardinal also seeks acquisitions of over-leveraged companies when there is a clear upside from their purchase based on strong commodity prices. The Company operates throughout the Continental United States. More information on Cardinal Energy Group, Inc. is available at www.cardinalenergygroup.com.