Cardinal Energy Group Inc. (fka CEGX)

[RLBTrader]

I FOUND IT: This major active ongoing Cardinal oil producing asset is hidden on page #25 of the Q10 filed on May 25, 2016.

Q10 Link: http://compliance-sec.com/secfilings/company/cegx/link_files/2016/05-12-2016/Form10-Q/Form10-Q.pdf

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.