Cardinal Energy Group has acquired the crude oil assets of EOI Eagle Operating in Texas, US in exchange for 1,000,000 shares and a note for $250,000.
The acquired assets are located in Frisco near proven oil fields having considerable current production. They are also said to have major potential for increased levels of crude oil production.
Cardinal Energy CEO Timothy W. Crawford said: "We are pleased to announce the acquisition of Eagle's assets as these assets will generate significant revenues to the Company.
“However, the jewel of this acquisition is the many years of experience that Paul Carlisle brings to Cardinal".
Paul Carlisle, who is the president and owner of EOI Eagle Operating, will be appointed as the president and chief operating officer of Cardinal Energy in the coming 30 days.
Carlisle revealed that plans are to prioritize on reviving production on the wells using minimal cost of returning to full operation.
With the addition of Eagle’s current leases and new equipment, Cardinal Energy is strategically placed to develop all of the latter’s existing properties along with more leases that will be acquired in the future, said Carlisle.
He further added: “Now that commodity prices have stabilized we expect to bring these leases back on line quickly. With our low development and lifting costs we plan to capitalize on this opportunity by bringing additional wells online to increase production levels and to extend the economic lives of these properties.”
Cardinal has plans to perform infill development drilling to pave way for new production and reserves that have already been explored. Its acquisition of two complete service rigs recently is expected to decrease possible delays usually associated with completion work, concluded Carlisle.