DUBLIN OH, Sep 02, 2014 (Marketwired via COMTEX) — Cardinal Energy Group, Inc. (OTCQB: CEGX) is pleased to announce that it has completed the acquisition of the Fortune Lease. Cardinal will participate in 50% of the play on 310 acres. The lease has one un-completed, plugged well that will be re-entered and re-drilled to the prolific Caddo formation. Activity should commence on or about September 15, 2014. The plan is to continue the development of the lease by drilling 3 to 5 new wells into the various other formations on the lease.
Timothy Crawford, CEO of Cardinal, comments, “This target has been recognized by utilizing geophysical and seismic data. The formation shows a very strong amplitude anomaly. This re-entry is up dip from a known producer that had an initial production of 150 BOPD. We are looking forward to the development of this prospect and its potential to add to our daily production.”
The following is a geological abstract from the site http://jackcountydeals.weebly.com/ regarding the Caddo and the other associated formations:
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.
There has been a rapid movement of Majors and Large Independents focusing on developing and exploring these areas. This is a result of wells potentially producing an oil ratio in excess of 50% gross production as well as having low drilling costs and high rates of return.
Since 2011, Majors have acquired tens of thousands of net acres of Marble Falls/Caddo /Mississippi Lime and continue to increase acreage/drill locations, including the expansion of all resource plays with successful “tight hole” wells distanced away from early “core” areas.
The Marble Falls is an oil-rich Pennsylvanian-age porous limestone formation that is deposited above the Barnett Shale and can form aberrational pinnacle reefs at depths less than 5000 feet, reaching a thickness of 400+ feet. These resource plays create the opportunity for large reservoir targets with extraordinary hydrocarbon deposits within shoal basins; they have produced in excess of 100,000 BOE per well with additional High BTU gas adding potentially 500mm -1.0 B of production per well.
More information on Cardinal Energy Group, Inc. is available at www.cegx.us.
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 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 headquartered in Dublin, Ohio and has its regional operations office located in Albany, Texas. We are an environmentally responsible oil and gas Company. 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 threefold — 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, or it must be an overlooked or distressed prospect in the explosive shale formations like the Permian Basin or Eagleford shale. 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.