‘LOI sets terms for 50% Working Interest in wells located in Central West Texas’
DUBLIN OH, May 29, 2013 / PRNewswire: Cardinal Energy Group, Inc. (CEGX) has signed a Formal Letter of Intent to acquire a 50% working interest in the Conway-Dawson Lease located in Central West Texas. There are currently 46 wells and one injection well located within the Conway-Dawson Lease. There is additional acreage which will support drilling and completing up to 11 new development wells. Cardinal will become the operator of record and anticipates through the remediation of the current wells, the prospect can be producing an estimated 50 BOE per day within several months, with the additional development opportunities to follow.
Timothy Crawford, CEO of Cardinal, comments, “Our President James McCabe has considerable knowledge and first-hand experience working this area of Texas in the past. The Conway-Dawson leases are another step for Cardinal to continue its strategy to improve our balance sheet and deliver shareholder value from our share of the revenues. The prospect is currently producing revenue and we anticipate doubling the current production within six months after the formal acquisition, through reworks and newly drilled development wells”.
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.