Cardinal Energy Group, Inc. Signs Binding Letter of Intent with Tarcat Inc. 'Cardinal to acquire a 100% working interest in nine producing oil wells in South Central Kentucky'
DUBLIN, Ohio, Jan. 31, 2013 /PRNewswire/ -- Cardinal Energy Group, Inc (OTCQB: CEGX) announces the signing of a Binding Letter of Intent with Tarcat, Inc. The Binding Letter of Intent Provides for the purchase of a 100% working interest in existing well numbers 1, 3, 8, 9, 13, 20, 25, TD#1, TD#2 located on Tracts 4 and 5 of the property known as the Froggett Farm located in South Central Kentucky. Some of the wells on this lease have a documented history of up to 100 bbls.
The agreement set forth by the Binding Letter of Intent also provides for a First Right of Refusal to secure the Working Interest on all additional wells drilled on Tracts 4 and 5 of the Froggett Farm. Approximately 20 future wells can be drilled on Tracts 4 and 5. The purchase includes all ancillary gathering equipment, including pipe, tanks and pump jacks.
Tarcat Inc. and Cardinal Energy Inc. are completing a Definitive Material Agreement that puts forth the Terms and Conditions of the final sale. The Final Purchase Agreement is anticipated to be completed by February 15, 2013.
Timothy W. Crawford, the President and CEO of Cardinal Energy Group, Inc. remarks, "An article from June 30, 1986 in the Kentucky local paper states that Wilco Energy and Summit Petroleum discovered a new oil field in Metcalf County, in the Knox Formation with a new well called J. Rowe No. 1. The well came in at 5 barrels of oil per hour. As of the printing of the article the J. Rowe No. 1 well was producing 120 barrels of oil per day. The article stated that sources close to Wilco Energy and Summit Petroleum indicated that after a two year study of the geological structures that the area compares in many ways to the Exie-South and Pickett Chaple fields. These two fields, as of the date of the June 30, 1986 had been productive since the mid-seventies, producing in excess of 500,000 bbls."
ABOUT CARDINAL ENERGY GROUP, INC. (CEGX): (www.cardinalenergygroup.com) Cardinal Energy Group, Inc. operates as an independent Oil and Natural Gas Producer based in Dublin, Ohio. Cardinal is focused on producing oil and natural gas from proven formations that have existing wells that need remediation due to neglect or disrepair. Cardinal utilizes modern production methods and technology to restart or increase production through reworks or new drilling within the target field. The Company operates throughout the Continental United States.
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SOURCE Cardinal Energy Group, Inc.