‘First Well Re-entry into the Prolific Caddo Formation’
Dublin OH, October 2, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that it has re-entered the CW Hendrick B #1 Well on the Fortune Leases. Work began September 29th with the first drilling crew moving on site. Cardinal is participating in 50% of the play situated on 310 acres. The plan is to re-enter this un-completed and plugged well by re-drilling it the to the prolific Caddo formation.
“This CW Hendrick B #1 well that we are reentering is up-dip to another Caddo well located approximately one mile away that came in flowing 151 BOPD and 204 MCF and has cumulative production of over 56,000 BOE. The CW Hendrick well we are reentering was drilled in September of 1984. It was not completed and was plugged after a good show of oil, most likely due to the worldwide oil price collapse when the real dollar value of oil fell from an average of $78.20 in 1981 to an average of $26.80 per barrel in 1986,” Timothy Crawford, CEO of Cardinal remarks, “the seismic amplitude indicates a very sizable reef that covers 190 acres in the Caddo formation on the Fortune leases. As previously stated, our plan is to continue the development of the leases by drilling 3 to 5 new wells into the various other formations. The leases cover 310 acres and have seismic data that will help with delineating additional locations. These leases are contiguous with a lot of potential. The 1400 foot Cook Sandstone in the area south of the Fortune Leases produced over 88 thousand BOE out of about 3 producers, and was abandoned prematurely. It looks like two new wells drilled one north and one south should do well. There are a couple of other well-known zones that produce immediately in the area so we plan to test these new wells to about 2000 feet in depth.”
About the Caddo Formation
The Marble Falls, Caddo, and the Mississippi Lime formations are shallow and found in numerous counties within the Fort Worth Basin, and are in the same geographic area as the prolific Barnett Shale play in North Texas. The vast majority of wells drilled to date have been vertical completions, typically providing high initial production, with lower drilling and completion costs. Shorter horizontal legs are showing great promise to date. Because of the limestone’s porosity and natural fractures, drill and completion costs can be 35-50% of the typical unconventional well costs compared to other currently active plays in Texas, New Mexico and Oklahoma.