‘Letter of Intent sets terms and conditions to acquire Mohican’s assets’
DUBLIN OH, July 22, 2013 / PRNewswire: Cardinal Energy Group, Inc. (OTCQB: CEGX) Cardinal Energy signed a formal Letter of Intent (LOI) to acquire 24 wet natural gas wells and 11,000 lease acres held by production located south of Corpus Christi, Texas in Webb County. The LOI sets the terms to purchase all property rights, title, and interest. The acquisition covers all lands, wells, materials, equipment, personal properties, fixtures, and facilities (pipelines and production facilities), all related agreements, leases, permits, rights-of-way, easements, licenses, options, and orders. The trailing 12 month gross revenue is in excess of $15,000,000 with Net Revenue Interest in excess of $10,000,000.
Cardinal’s CEO Timothy Crawford comments, “This acquisition adds diversity to Cardinal’s growing asset base and provides a strong revenue stream. The properties are producing significant amounts of oil and gas and have tremendous upside potential for future development. We will conclude our due diligence process and sign a final purchase and sale agreement within several weeks. Cardinal will become the operator of record and plans to contract with the current operator to continue managing the onsite operations and administrative duties”.
About Cardinal Energy Group, Inc.
Cardinal Energy Group, Inc. is an American company that produces American oil and natural gas. 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. The prospect must offer a strong up-side for production. The upside we seek in a prospect is twofold – it must have the potential be restarted or have its current production increased using newer technology and remediation methods; 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.
Forward Looking Statements
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward looking statements to reflect events or circumstances that arise after the date thereof.
Cardinal Energy Group, Inc.
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