Cardinal Energy Group, Inc. has finalized the previously announced Purchase Sale Agreement to acquire the Stroybel-Broyles Lease located in Eastland County, Texas. The prospect was acquired from Hunting Dog Capital, LLC located in San Francisco, California. This prospect consists of 235 acres and 32 oil wells. This acquisition increases the Company's acreage in Texas by 235 acres. This brings Cardinal's aggregate acreage in Texas to 1,235 acres and aggregate oil production to 44 BOPD.
Timothy Crawford, CEO of Cardinal Energy remarks, "There are 32 wells on this prospect which we look forward to recompleting. This new prospect has 3 additional zones already behind pipe that have production potential. We intend to perforate these other zones and then co-mingle the new zones' production with existing output to significantly increase overall production from each well. We also intend to drill additional development wells into the known producing formations on this lease. The Dawson-Conway lease reworks in Shackelford County, Texas have given us considerable insight into the formations underlying these two counties. We are confident that we can increase this prospect's current production, cash flow and returns."