Cardinal Energy Enters $27 Million Purchase Agreement For Bantry Assets

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To buy 100% operated WI of assets in the core Bantry area in Alberta adding 350 BOE/d with 90% oil and NGLS of high netback production.

Cardinal Energy Ltd. (Toronto: CJ) announced Jan. 23 that it entered into an agreement with two private companies to purchase assets in Cardinal's core Bantry area in Alberta for $27 million.

Cardinal, of Calgary, will have a 100% operated working interest in the properties. The acquisition adds 350 barrels of oil equivalent per day (BOE/d) with 90% oil and NGLs of high netback production and proved plus probable reserves of 975,000 BOE effective Dec. 31, 2013.

There is six horizontal development and four vertical drilling locations on the five sections of lands (100% working interest) included with the acquisition.

The acquisition is consistent with Cardinal's business plan of doing complimentary tuck in acquisitions in its core operating areas. Bantry is located near the City of Brooks, Alberta. The property production is sourced from the Mannville formation.