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Dallas, Texas, Jan. 23, 2019 (GLOBE NEWSWIRE) -- Cardinal Energy Group, Inc (“Cardinal Energy” or “the Company”) (OTCQB: CEGX) – UPDATE
Cardinal Energy appointed a new management team on August 1, 2017, under whose direction the Company is working diligently to bring the company back to full reporting status and plans to release an audited financial statement for December 31, 2016 to be included in a Form 10-K. The 2016 Form 10-K is the first step in preparing delinquent filings required by the Securities and Exchange Commission delinquent forms, including Forms 10-Q for the quarters ended March, June and September for 2016 and 2017; also, the Forms 10-K for the years’ ended December 2017 and 2018.
We have retained a new corporate accounting advisor to assist in preparing accounting records which will be audited by a new outside auditor. The work has included testing the accounting ledgers for 2016, where necessary consolidating and assembling the corporate records. In connection with the completion of the 2016 audit, our group has located and provided supporting documentation to back up all accounting entries and notes in the financial statements. Management has spent over a year identifying and securing all financial records, supporting the status of present and past legal cases, past common and preferred share issuances, the history of the status and disposal of oil and gas leases since September 2016 to date, locating the status and history of all physical and financial assets and financing agreements including all preferred shares, simple loans and convertible debt instruments.
A new auditor was engaged in late 2017 to carry out a 2016 audit of the Company’s financial statements. The previous auditor resigned in early 2017 but will be involved in approving the 2015 audit included as the comparative financial statements in the 2016 Form 10K. Upon completion of the 2016 Form 10-K we plan to engage our auditor to audit the 2017 financial statements.
The Company was an investor in the Bradford Joint Venture Partnership (BJVP), which held leases in the Bradford A and Bradford B properties. The Company’s subsidiary, CEGX of Texas Inc., was the operator for the BJVP. Due to the collapse of oil prices in 2015 the BJVP Bradford wells were shut down in 2016 until the oil prices recovered. Unfortunately, when the oil prices recovered the BJVP was unable to raise enough funds to place the wells back into production. The Bradford properties estate applied to have the leases returned for lack of production required by the underlying lease agreement. The Bradford estate in August 2017 subdivided the leases and thirteen were leased to another operator. The BJVP was still responsible to the remaining seven Bradford wells until they were transferred to another operator in April 2018 and then CEGX of Texas Inc. was replaced as operator.
In September 2017, the Company negotiated and signed a Working and Sale agreement with Kilberry Oil & Gas, Inc. (KOG) to locate and sell oil and gas assets to the Company. As consideration for the agreement, the Company was to pay KOG a cash payment of $80,000 and issue 0.48 Units of the Company’s Series D Unit offering. Cardinal Energy Group plans to review oil and gas opportunities of fractional, non-operating ownership in mineral interests located throughout the Woodford South Central Oklahoma Oil Province (“SCOOP”) and Sooner Trend, Anadarko, Canadian and Kingfisher basins/counties (“STACK”). As well as shale plays and similar plays throughout the mid-continent region of the U.S. The Company seeks opportunities to leverage off the financial strength and operational expertise of major players in the oil and gas industry when targeting such acquisitions.
Important Cautions Regarding Forward Looking Statements
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.
Web Site: www.cardinalenergygroup.com