Cardinal Energy Group, Inc. has signed a purchase and sale agreement to acquire the Stroybel-Broyles lease located in Eastland County, Texas from Hunting Dog Capital, LLC., of San Francisco, California. The prospect has 235 acres with 32 wells including 3 active wells and 2 injection wells. The active wells are producing 3 BOPD or 90 barrels per month.
"This prospect is an ideal acquisition for us. Most of the wells we target in Texas were previously completed during the drilling boom in the 1980's, yet there is still a significant amount of oil in the reservoir and equipment preserved on site," stated Timothy Crawford, CEO of Cardinal Energy. "We are using our experience gained from reworking our Dawson-Conway lease wells to apply our remediation techniques with other acquired prospects in the vicinity. Our strategy is to rework the three producing wells at Stroybel-Broyles to increase their production in the Marble Falls formation, and then perforate the zones in the other formations behind pipe and aggregate the production. We also plan to drill and complete an additional ten development wells on the prospect in its deeper formations."