‘Cardinal Energy eyes more acreage in Eagle Ford and Permian Basin’
San Antonio Texas, July 16, 2014 – Sandford Nowlin, Reporter-San Antonio Business Journal
Cardinal Energy Group Inc., which recently inked a deal for 2,800 acres in the Eagle Ford Shale, is on the prowl for additional drilling sites in the South Texas oil-and-gas play and in West Texas’ Permian Basin.
Dublin, Ohio-based Cardinal initially focused on purchasing underperforming and abandoned oil assets, but has since expanded its business plan to picking up undervalued acreage in booming plays such as the Eagle Ford, says John May, its senior vice president.
“We’re after the overlooks in these areas, the defaults,” May says. “We have the money to buy what we need, but the opportunity has to be right.”
May declined to say how much Cardinal is able to spend on new acquisitions in the Eagle Ford and Permian, but adds that the company is willing to reach partnerships with established operators to purchase and develop assets there.
“There’s a benefit to partnering with the majors in explosive areas like these,” he says. Cardinal is purchasing its first Eagle Ford holdings from Germany’s Nordic Oil USA 1 LLLP. It expects to close its deal for 2,800 acres in Gonzales and Wilson counties within six weeks.
The pending transaction includes interests in ten producing wells, one wastewater disposal well, production equipment, leases and drilling permits plus other assets needed to operate the wells. Cardinal currently operates 90 wells across 4,000 acres. About 1,800 acres of those holdings are in Texas.