Cardinal Energy Plans To Buy Kansas Leases
To buy 100% WI in oil and gas leases covering 17,000 acres in Pawnee and Hodgeman counties, 19 wells and other operational assets.
Cardinal Energy Group Inc. (OTCQB: CEGX) signed a definitive and binding purchase sales agreement with Kansas Petroleum Resources LLC for 100% working interest in oil and gas leases in Pawnee and Hodgeman counties, Kan.
The acquisition agreement was signed on Aug. 19 and covers 17,000 acres of land and include 19 oil and gas wells and other operational assets. The acquisition is part of management's ongoing plan to build a portfolio of oil and gas properties in the continental U.S. that are poised for further development. The wells to be acquired are located within the oil producing zones in Kansas known as the Mississippian limestone formation, Lansing-Kansas City limestone formation, the Cherokee Sand Basin and the Permian Chase Group formations. Upon completion of the acquisition, Cardinal's annual oil production will increase by at least 300 barrels of oil per day.
"We are excited to move forward with our acquisition of the Kansas Petroleum assets, as this marks a milestone in the growth of Cardinal. The assets include 3D Seismic surveys, 19 vertical oil-producing wells, along with 2 water disposal wells which have been drilled into the Arbuckle formation. Utilizing these assets we plan to acquire, we believe that we can double the field's production. Further, we believe that the addition of these assets will allow us to continue with our expansion strategy as we position our company to meet our expectations for the future in this important industry. Completing this acquisition poises us to take advantage of the improving pricing trends to fuel substantial growth for Cardinal in the coming years," said Timothy Crawford, CEO of Cardinal's CEO, in the release.
Cardinal Energy Group Inc. is an independent energy company engaged in the exploration, purchasing, development and operation of oil and gas leases in the U.S. The company is based in Dublin, Ohio.