Cardinal Energy Group Inc. (fka CEGX)

[tdbowieknife]

This last filing says they hold NO proven reserves.

Cardinal Energy Group, Inc.

Notes to the Unaudited Condensed Consolidated Financial Statements

March 31, 2016

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Depletion and depreciation of proved oil and gas properties is calculated on the units-of-production method based upon estimates of proved reserves. Such calculations include the estimated future costs to develop proved reserves. Oil and gas reserves are converted to a common unit of measure based on the energy content of 6,000 cubic feet of gas to one barrel of oil. Costs of unevaluated properties are not included in the costs subject to depletion. These costs are assessed periodically for impairment. As of March 31, 2016 and December 31, 2015 there were no proved reserves.

In light of the precipitous fall in crude oil prices during the last two years and the relatively small production volumes from the Company’s leases we elected to reduce the carrying value of our oil and gas properties during the fourth quarter of 2015. This reduction to the estimated net recoverable values of our oil and gas properties is reflected in the financial statements as a charge to impairment expense on the income statement for the year ended December 31, 2015.

In December of 2015 the Company employed the services of Bullet Development, a respected oil and gas development firm headquartered in Abilene, Texas, to assess the value and potential development options for its remaining oil and gas properties in north-central Texas, namely the Company-operated Powers-Sanders and Dawson-Conway leases and our non-operating working interest in the Fortune Prospect. Based on the results of the study and the recommendations from Bullet Development we have determined that the best course of action would be to sell our interests in the leases to interested local parties. Accordingly, the Company has held discussions with multiple parties who are interested in acquiring the properties. In the case of the Powers-Sanders leases at least one oil and gas firm has expressed an interest in acquiring the leases in order to exploit some shallow oil reservoirs believed to be present under the properties. In the case of the Dawson-Conway leases initial discussions have occurred between the Company and two interested parties. One of the parties is the operator of adjoining leases and is interested in acquiring one or more of the leases in order to include the Dawson-Conway leases into a “master water flood project” for all of the surrounding leases. Negotiations amongst the various parties are ongoing.

These are the only leases I can find and only with a historical wellbore search. They are off schedule and that means they have been plugged.

click image to enlarge:



CEGX has NOTHING...

.


Buyer Beware
Pump and dump scam




..