Cardinal Energy Group, Inc. Signs Binding Letter of Intent with Tarcat Inc.

Thu Jan 31, 2013 9:00am EST

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'Cardinal to acquire a 100% working interest in nine producing oil wells in
South Central Kentucky'


DUBLIN, Ohio,  Jan. 31, 2013  /PRNewswire/ -- Cardinal Energy Group, Inc (OTCQB:
CEGX) announces the signing of a Binding Letter of Intent with Tarcat, Inc. The
Binding Letter of Intent Provides for the purchase of a 100% working interest in
existing well numbers 1, 3, 8, 9, 13, 20, 25, TD#1, TD#2 located on Tracts 4 and
5 of the property known as the Froggett Farm located in South Central Kentucky.
Some of the wells on this lease have a documented history of up to 100 bbls.  

The agreement set forth by the Binding Letter of Intent also provides for a
First Right of Refusal to secure the Working Interest on all additional wells
drilled on Tracts 4 and 5 of the Froggett Farm. Approximately 20 future wells
can be drilled on Tracts 4 and 5. The purchase includes all ancillary gathering
equipment, including pipe, tanks and pump jacks.

Tarcat Inc. and Cardinal Energy Inc. are completing a Definitive Material
Agreement that puts forth the Terms and Conditions of the final sale. The Final
Purchase Agreement is anticipated to be completed by  February 15, 2013.  

Timothy W. Crawford, the President and CEO of Cardinal Energy Group, Inc.
remarks, "An article from  June 30, 1986  in the  Kentucky  local paper states
that Wilco Energy and Summit Petroleum discovered a new oil field in Metcalf
County, in the Knox Formation with a new well called J. Rowe No. 1. The well
came in at 5 barrels of oil per hour. As of the printing of the article the J.
Rowe No. 1 well was producing 120 barrels of oil per day. The article stated
that sources close to Wilco Energy and Summit Petroleum indicated that after a
two year study of the geological structures that the area compares in many ways
to the Exie-South and Pickett Chaple fields. These two fields, as of the date of
the  June 30, 1986  had been productive since the mid-seventies, producing in
excess of 500,000 bbls."

ABOUT CARDINAL ENERGY GROUP, INC. (CEGX): (www.cardinalenergygroup.com) Cardinal
Energy Group, Inc. operates as an independent Oil and Natural Gas Producer based
in  Dublin, Ohio. Cardinal is focused on producing oil and natural gas from
proven formations that have existing wells that need remediation due to neglect
or disrepair. Cardinal utilizes modern production methods and technology to
restart or increase production through reworks or new drilling within the target
field. The Company operates throughout the Continental United States.  

Investor Relations - Company
PHONE:   614.459.4959
info@cardinalenergygroup.com

 

SOURCE  Cardinal Energy Group, Inc.

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