Cardinal Energy Group, Inc. signed a formal Letter of Intent (LOI) to acquire 24 wet natural gas wells and 11,000 lease acres held by production located south of Corpus Christi, Texas in Webb County. The LOI sets the terms to purchase all property rights, title, and interest. The acquisition covers all lands, wells, materials, equipment, personal properties, fixtures, and facilities (pipelines and production facilities), all related agreements, leases, permits, rights-of-way, easements, licenses, options, and orders. The trailing 12 month gross revenue is in excess of $15,000,000 with Net Revenue Interest in excess of $10,000,000.

Cardinal's CEO Timothy Crawford comments, "This acquisition adds diversity to Cardinal's growing asset base and provides a strong revenue stream. The properties are producing significant amounts of oil and gas and have tremendous upside potential for future development. We will conclude our due diligence process and sign a final purchase and sale agreement within several weeks. Cardinal will become the operator of record and plans to contract with the current operator to continue managing the onsite operations and administrative duties."

Tags: Cardinal Energy Group