Cardinal Energy Group Inc. (OTC: CEGX) sold its California and Ohio oil and natural gas assets to California Hydrocarbons Corp. on April 22, and will cancel 3 million of its common shares held by California Hydrocarbons, the company said April 24.
Cardinal’s common stock is worth $2 million, the company noted.
Cardinal will focus on Texas oil and natural gas production, the company added.
The company had held partial working interest in 11 oil and natural gas wells in Licking and Knox counties, Ohio, and also held 100% working interest in two Holmes County, Ohio oil wells in 2011, Cardinal said.
Cardinal also had full working interest in two wells in Colusa County, Calif., that year, the company noted.
"The sale of our California and Ohio assets are consistent with our strategy to focus our current and future production in Texas," Timothy Crawford, CEO of Cardinal Energy, said.
He added, "We continue to see significant opportunities to increase our production and reserves from our 78 wells located in Shackelford and Eastland counties. By streamlining our assets and operations, we can more effectively deploy our capital to generate returns to our shareholders."
The Colusa County assets’ sale includes the transfer of a $20,000 cash bond with the state, as well as 3-D data for section 17, Cardinal said.
When the sale is completed, Cardinal will eliminate about $650,000 in balance sheet impairments, the company said.
Cardinal Energy Group Inc. is based in Dublin, Ohio.
Recommended Reading
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Tivoli Midstream Buys Southeast Texas Coast Infrastructure
2024-04-29 - Tivoli Midstream acquired the Chocolate Bayou from Ascend Performance Materials, including storage and land for development.
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
Global Partners Buys Four Liquid Energy Terminals from Gulf Oil
2024-04-10 - Global Partners initially set out to buy five terminals from Gulf Oil but the purchase of a terminal in Portland was abandoned after antitrust concerns were raised by the FTC and the Maine attorney general.
EQT Ups Stake in Appalachia Gas Gathering Assets for $205MM
2024-02-14 - EQT Corp. inked upstream and midstream M&A in the fourth quarter—and the Appalachia gas giant is looking to ink more deals this year.