DUBLIN, Ohio, May 29, 2013 /PRNewswire/ -- Cardinal Energy Group, Inc. (OTCQB: CEGX) has signed a Formal Letter of Intent to acquire a 50% working interest in the Conway-Dawson Lease located in Central West Texas. There are currently 46 wells and one injection well located within the Conway-Dawson Lease. There is additional acreage which will support drilling and completing up to 11 new development wells. Cardinal will become the operator of record and anticipates through the remediation of the current wells, the prospect can be producing an estimated 50 BOE per day within several months, with the additional development opportunities to follow.
Timothy Crawford, CEO of Cardinal, comments, "Our President James McCabe has considerable knowledge and first-hand experience working this area of Texas in the past. The Conway-Dawson leases are another step for Cardinal to continue its strategy to improve our balance sheet and deliver shareholder value from our share of the revenues. The prospect is currently producing revenue and we anticipate doubling the current production within six months after the formal acquisition, through reworks and newly drilled development wells."
ABOUT CARDINAL ENERGY GROUP, INC. (OTCQB: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 formations that have significant proven reserves remaining that can be produced economically. The Company targets fields that have wells that may need remediation due to neglect or disrepair to improve their production. Cardinal utilizes modern methods and technology to restart or increase production through reworks. The target field is then further established with newly drilled development wells. Cardinal's strategy is based on exploiting these undervalued assets by acquiring these wells and then applying the Company's calculated remediation plan. Cardinal also seeks acquisition of over-leveraged companies where there is a clear upside from their purchase due to commodity price increases. The Company operates throughout the Continental United States.
SOURCE Cardinal Energy Group, Inc.