FLEX NATION

[RLBTrader]

CEGX, the Permian Basin and Wall Street:

Biggest oil discovery in U.S. history just proven in Midland Texas, November, 2016:

http://www.cnn.com/2016/11/17/us/midland-texas-mammoth-oil-discovery/


...now CEGX is right around this area, their office is based in Central Texas in Abilene:

500 Chestnut Street, Suite 1615
Abilene, TX 79602


...and it has been developing oil and gas wells right next door in North Central Texas...here is their webpage and thier last 10k March 28th of 2016.

http://www.cardinalenergygroup.com/prospects/

http://compliance-sec.com/secfilings/company/cegx/link_files/2016/03-30-2016/Form10-K/Form10-K.pdf

Their properties are located as we see above in North Central Texas.....on the very edge to the new Oil Boom going on these years in West Texas. Check out this more recent CNBC article poster Nissan370GT found:

http://www.cnbc.com/2016/11/28/oil-and-gas-mergers-and-acquisitions-are-finally-making-a-comeback.html

"Deal data by region shows the recovery has been driven by some regions more than others — and one in particular: the Permian Basin, in western Texas.

...The Permian is prized for its low-breakeven cost of producing a barrel of oil, leading to a gold rush of sorts that has sent acreage prices soaring there. It's been the epicenter of the recovery in the U.S. oil rig countsince June. What's interesting about the recovery is it's being heavily driven by sales of undeveloped acreage, as opposed to reserves that are already producing, said Andrew Dittmar, M&A analyst at PLS Inc.

...The current business cycle is also remarkable because drillers have been able to slash capital spending in areas where production isn't economical, said PLS Managing Director Brian Lidsky. At the same time, they've wrung cost reductions from oilfield services firms and used technology to help them drill more efficiently.

..."If you're not in one of those top three or four plays (Permian Basin area is the top by almost double the mergers and aquisitions - please see the CNBC chart) you're probably not going to get a lot of Wall Street support in your acquisitions," Lidsky said.



Now compare the above CNBC information with what CEGX does - a perfect fit. Here is a short video of what they do and how cheap CEGX can obtain a barrel of oil these days of $14(!):





...and here is from Page:4 of their last 10-k in March:

"We are focused on growth via the development of shallow proven undeveloped reserves in or adjacent to currently producing fields, exploiting untapped “behind the pipe” reserves by recompleting existing well bores in zones overlying currently producing formations and by the selected application of water flood and other secondary recovery techniques to mature but marginally producing fields throughout north-central Texas. We may enter into agreements with mid-sized and independent oil and natural gas companies to drill wells and own interests in oil and natural gas properties. We also may drill and own interests without such strategic partners.

The Company differentiates itself in the marketplace by focusing on smaller older oil and gas properties that have been allowed to deplete because of either multiple changes in ownership or due to a lack of capital required to maintain production rates.

We also intend to acquire additional oil and gas fields that are producing normally in a proven reserve, as well as, non-producing oil and gas fields with proven reserves in known formations for development in the future. Future acquisitions may also include assets that are being divested from overleveraged companies with weak or weakened balance sheets due to the present downturn in the oil and gas industry.

We have no plans to change our core business activities. We may however elect to combine with one or more privately held oil and gas companies in order to exploit acquisition opportunities during the current downturn in the oil and gas industry.

We have developed a two-fold growth plan to develop oil and gas reserves: 1) Acquire producing fields with significant, proven un-developed reservoirs that provide growth opportunities through in-field drilling programs; and 2) Re-work marginal, neglected, abandoned, and low producing oil and gas wells located in mature fields with economically efficient secondary recovery methods or recomplete existing wells by perforating new pay zones. New drilling and fracturing methods utilizing today’s technology make it economically possible to re-enter and recover stranded reserves from older wells. In addition to remediating and reworking existing wells, we also continue field development by drilling new producing, injection and disposal wells.

Utilizing the latest drilling methods and equipment, together with new fracturing and recovery technologies such as water, sand, and chemical dilution we have the ability to access previously cost prohibitive oil and natural gas reserve formations."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11290444

Finally here is what the USGS said about their recent discovery...in the Permian Basin right next door to CEGX!:

"Release Date: NOVEMBER 15, 2016
This is the largest estimate of continuous oil that USGS has ever assessed in the United States.
The Wolfcamp shale in the Midland Basin portion of Texas’ Permian Basin province contains an estimated mean of 20 billion barrels of oil, 16 trillion cubic feet of associated natural gas, and 1.6 billion barrels of natural gas liquids, according to an assessment by the U.S. Geological Survey. This estimate is for continuous (unconventional) oil, and consists of undiscovered, technically recoverable resources.
The estimate of continuous oil in the Midland Basin Wolfcamp shale assessment is nearly three times larger than that of the 2013 USGS Bakken-Three Forks resource assessment, making this the largest estimated continuous oil accumulation that USGS has assessed in the United States to date.
“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” said Walter Guidroz, program coordinator for the USGS Energy Resources Program. “Changes in technology and industry practices can have significant effects on what resources are technically recoverable, and that’s why we continue to perform resource assessments throughout the United States and the world.”

https://www.usgs.gov/news/usgs-estimates-20-billion-barrels-oil-texas-wolfcamp-shale-formation


SO with all the above, what we know is that Cardinal Energy CEGX has been operating and developing wells right next to the biggest oil find in US history. Is there an outside chance that maybe with new oil discovering techniques that the USGS is using these days ....just maybe there is more oil than thought on their lands? (...West Texas 'new' discovery by USGS in November, 2016 came after a hundred years of surveys not finding all that(!). Then we find that a $500 mil Wall Street company just took majority ownership. Then we see two buys for 38 million shares almost half the real OS on Friday for over $200,000; its not too hard to see that a possible merger, acquisition or something else big is going on.