‘2,800 acres and 11 wells in the prolific Eagle Ford Shale play to be added to Cardinal’s assets’
Dublin OH, July 14, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce the signing of a Term Sheet laying out the specific terms and conditions precedent to a final Purchase & Sale Agreement to acquire oil and gas lease interests on approximately 2,800 net acres, located in the Eagle Ford Shale formation underlying Gonzales and Wilson Counties in the central portion of the State of Texas. The acquisition includes operating interests in ten producing wells, one salt water disposal well, production equipment, leases and drilling permits, together with all transferable intellectual assets held by Nordic Oil USA 1 LLLP necessary to the operation of the wells and leases.
Gonzales and Wilson counties are in the northern expansion area of the Eagle Ford Shale formation. The industry has been moving north into these areas and is having impressive results with some IP’s (Initial Production Rates) of 3,000 to 4,000 BOPD. The area also has other potential formations including the Austin Chalk and Buda.
“We have been diligently looking for an entry into the Eagle Ford Shale formation for the past year. We are really thrilled with the signing of this term sheet with Nordic and are excited by the opportunity to participate in the development of oil resources in the Eagle Ford Shale formation,” CEO Timothy Crawford commented, “These oil and gas properties are currently producing primarily from the Anacacho and Austin Chalk formations and also include the deep rights in approximately 1,500 net acres, for the development of the Eagle Ford Shale and Buda formations, which are below the base of the Austin Chalk formation. The companies operating adjacent and in proximity to this acreage have horizontal wells coming in at 3,000 to 4,000 BOPD. The production picked up by this acquisition significantly increases our existing base production. We are excited about the development of this prospect, as it is accretive to our existing inventory, and we believe it will have a significant impact on our future production and crude oil reserves.”