Cardinal Energy Group Inc. (fka CEGX)

[tdbowieknife]

Ahhh... Here's were all those leases went and why they no longer have them.

The Company filed this lawsuit against the corporate defendants and the individual members in their personal capacity on June 3, 2015. The lawsuit stems from a Working Interest Purchase Agreement that the Company entered into on July 3, 2013 with Defendant HLA Interests (an oil and gas management company that owns and controls existing oil fields in Texas), pursuant to which the Company agreed to purchase from HLA Interests its 85% working interest in 5 oil and gas leases known as the Dawson-Conway Leases (the “Leases”) in Shackelford County, Texas (the “Agreement”). The Company was fraudulently induced to enter into the Agreement by the defendants, who knew that 3 of the 5 leases had expired prior to executing the Agreement.

And the Bradford “A” and Bradford “B” leases located in Shackelford County, Texas Have been sold...

Recent Developments



On June 12, 2015, the Company, and each of the other beneficial owners of seventy-three (73) participation interests (“Participation

Interests”) in the Bradford JV (collectively, the “Sellers”) sold to a third party their Participation Interests in certain oil and gas leases, along with the associated contracts and real property interests necessary and useful in the ownership and operation thereof, all situated in Shackelford County, Texas (the “Oil and Gas Leasehold”), (ii) the oil and gas wells located on the Oil and Gas Leasehold, along with the associated fixtures and personal property, including hydrocarbons produced therefrom (the “Wells”), and (iii) the rights to that certain Farmout Agreement between CEGX and Bluff Creek Petroleum, LLC for a total consideration of $1,825,000. Concurrent with the sale of the Participation Interests, the purchaser entered into an Operating Agreement with CEGX to conduct the drilling operations and related activities necessary to develop the properties. Throughout 2015 and into first quarter of 2016 the Company has worked with representatives of the purchaser to design and install a pilot water flood program on the Bradford “A” and Bradford “B” leases. We anticipate that the Bradford “A” and Bradford “B” leases will become important producing properties as we complete the full implementation of the water flood enhanced oil recovery project. We currently estimate that it will require an additional $650,000 in 2016 to complete the drilling and completion of producing, injector and source water wells and to finish the acidizing and down-hole pump repairs required to fully implement the water flood program.

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Buyer Beware
Pump and dump scam




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