Cardinal Energy Group Inc. (fka CEGX)

[MJAM2020]

I am new to this but am trying to do my best DD. Searching the TRRC website it would appear that while you have shown a document from 2016 stating that CEGX was deficient due to lack of filing a P-5, there have been a few events since that date that show some promise. I would be happy to be enlightened as to any errors in my train of thought.

Timeline:
June 2016 - your info

July 2016 - an "OIL WELL POTENTIAL TEST, COMPLETION OR RECOMPLETION REPORT, AND LOG" report W-2 is filed and approved. (how are oil producing wells approved if they are not in some kind of standing with the TRRC? ehhh shaky evidence but still poking holes...)
Link - http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=157211

August 2016 - CEGX's motion for rehearing is submitted. (Not avoiding the TRRC just a little late filing for rehearing. Struggling business trying their best...yada yada)
Link - http://www.rrc.state.tx.us/media/35801/20-0301211-cegx-of-texas-llc.pdf

October 2016 - TRRC denies motion for rehearing (same link as above)

April 3, 2017 - P-5 filed and fines paid as per CEO saying these were paid up to date just waiting on auditors I believe. (some notable information from this next link, P5 compliance flags no and no, P5 expirtion date 3/1/2018 so it is active, P5 inactive date - blank, Organization status - active/extension)
Link - http://webapps2.rrc.state.tx.us/EWA/organizationResultsDrillDownAction.do?methodToCall=searchByOperatorNo&operatorNo=140712&rrcActionMan=H4sIAAAAAAAAAL1Qy2rDMBD8mvRiEFrZeVz2YIzTSyCkMW3A5LC1hRNwLLOS6QN9fGWXQklz6iGnHWZnh5n1ICUqDxIQHpirtHJn0z1VXJfyiBP_pl-p760SYS2sI6eFexeDncXpSgaFwpla5y9pgPEIDTfUnT9pNNoNmj--PUVtgiLBi3YnUxcmo7YNxBxZu4G7wuw1cXUK1ArlnyilnbYpN1b0xHR5pnbQU8IFQiKXMJZYYpY_HqLtOiryQ7qPNpvsygnuVMr-lFlgT43mX6FvNoRjea0bkyJ4hSB9HECC0s_DDH1vXP_3P19Zj8cvAQIAAA

April 25, 2017 - Meeting minutes contain a discussion about an enforcement action against CEGX for violating 16 TAC §3.8(d)(1). This is a violation of disposal methods, the exact verbage can be found on page 6 here http://www.tidrc.com/resources/Laws/Statewide-Rule-8-Whole.pdf
Link - http://www.rrc.state.tx.us/media/39319/conference-agenda-for-april-25-2017-final-as-posted.pdf

Further evaluation of this finds that the well was last inspected and approved in April of 2016 as far as disposal is concerned. This wells disposal method is disposal into a non productive zone
Link - http://webapps2.rrc.state.tx.us/EWA/uicResultsDrillDownQueryAction.do?methodToCall=searchByUicNo&uic=000099439&rrcActionMan=H4sIAAAAAAAAALWQT2vDMAzFP013CRjLSf8ddDAh3aVQtoatEHrwHNMW0jrINtvAH35Ot8Loeiu7CPGeJN5PEThHEYEDwgORltof7OlZU9vwLZ71d_Om-t4JlmzmvPKG-Q8W3CiXM54mBI7EonqVqc2HNhz0UzD0-X2KtTYZBR6N39u2tqXquiSMkYwPdKrt2ijS-yTNkP9J0LizK2nnWK9IHV9UF8xPsFWqE4SCT2EgmGJZPW6y1SKrq41cZ8tleXUP_pfIXUgm2KudoV-Jb-LBtrmeGwIiRIHAY47zWCCP4yQkzBvb9z3nCySGIjX7AQAA
A few notes on this - Decision on this has not been announced yet so it is not officially anything yet. It is not the main bradford wells everybody is talking about having potential. Lastly, this appears to be a non producing well but a well for disposal (I am stretching here with my limited understanding of the above link)

I easily could be misreading this but the timeline I was able to follow via the TRRC website would seem to indicate a company that is mostly in compliance and working their way back on most issues. In this industry fines and compliance issues are inevitable. It is what a company does to rectify these issues that is important and as long as CEGX shows progress and stays transparent, I will keep my meager investment and hold strong. Especially considering I am showing profits as of right now with promise of more to follow.

In His Humble Opinion