Dallas, Texas, Jan. 23, 2019 (GLOBE NEWSWIRE) -- Cardinal Energy Group, Inc (“Cardinal Energy” or “the Company”)
(OTCQB: CEGX) – UPDATE
Cardinal Energy appointed a new management team on August 1, 2017, under whose direction the Company is working
diligently to bring the company back to full reporting status and plans to release an audited financial statement for December 31,
2016 to be included in a Form 10-K. The 2016 Form 10-K is the first step in preparing delinquent filings required by the Securities
and Exchange Commission delinquent forms, including Forms 10-Q for the quarters ended March, June and September for 2016 and 2017;
also, the Forms 10-K for the years’ ended December 2017 and 2018.
We have retained a new corporate accounting advisor to assist in preparing accounting records which will be
audited by a new outside auditor. The work has included testing the accounting ledgers for 2016, where necessary consolidating and
assembling the corporate records. In connection with the completion of the 2016 audit, our group has located and provided
supporting documentation to back up all accounting entries and notes in the financial statements. Management has spent over a year
identifying and securing all financial records, supporting the status of present and past legal cases, past common and preferred
share issuances, the history of the status and disposal of oil and gas leases since September 2016 to date, locating the status and
history of all physical and financial assets and financing agreements including all preferred shares, simple loans and convertible
debt instruments.
A new auditor was engaged in late 2017 to carry out a 2016 audit of the Company’s financial statements. The
previous auditor resigned in early 2017 but will be involved in approving the 2015 audit included as the comparative financial
statements in the 2016 Form 10K. Upon completion of the 2016 Form 10-K we plan to engage our auditor to audit the 2017 financial
statements.
The Company was an investor in the Bradford Joint Venture Partnership (BJVP), which held leases in the Bradford
A and Bradford B properties. The Company’s subsidiary, CEGX of Texas Inc., was the operator for the BJVP. Due to the collapse of
oil prices in 2015 the BJVP Bradford wells were shut down in 2016 until the oil prices recovered. Unfortunately, when the oil
prices recovered the BJVP was unable to raise enough funds to place the wells back into production. The Bradford properties estate
applied to have the leases returned for lack of production required by the underlying lease agreement. The Bradford estate in
August 2017 subdivided the leases and thirteen were leased to another operator. The BJVP was still responsible to the remaining
seven Bradford wells until they were transferred to another operator in April 2018 and then CEGX of Texas Inc. was replaced as
operator.
In September 2017, the Company negotiated and signed a Working and Sale agreement with Kilberry Oil & Gas, Inc.
(KOG) to locate and sell oil and gas assets to the Company. As consideration for the agreement, the Company was to pay KOG a cash
payment of $80,000 and issue 0.48 Units of the Company’s Series D Unit offering. Cardinal Energy Group plans to review oil and gas
opportunities of fractional, non-operating ownership in mineral interests located throughout the Woodford South Central Oklahoma
Oil Province (“SCOOP”) and Sooner Trend, Anadarko, Canadian and Kingfisher basins/counties (“STACK”). As well as shale plays and
similar plays throughout the mid-continent region of the U.S. The Company seeks opportunities to leverage off the financial
strength and operational expertise of major players in the oil and gas industry when targeting such acquisitions.
Important Cautions Regarding Forward Looking Statements
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as
amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an
investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements,
which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any
forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results
could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation,
competition and other material risks.
Contact Information
Office: 325-762-2112
Web Site: www.cardinalenergygroup.com
Information: infor@cegx.us