DUBLIN, OH--(Marketwired - Jul 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."
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.cegx.us.