Cardinal Energy Group Inc. (OTCBB: CEGX) has acquired 2,200 acres lease rights from Chase Energy Group in the Clinton sandstone formation in Wayne County, Ohio.
Cardinal plans on drilling five wells in the first half of 2014. The acreage is currently held by production by Devon Energy, which owns the deep lease rights. The principal of Chase Energy Group has also agreed to join Cardinal as director of business development, according to the release.
The Clinton sandstone formation has been the target of about 60,000 wells in the last 50 years. The depths in the formation range from 3,500 to 6,000 feet. The formation has a documented history of strong natural gas production with associated oil condensates. Major past producers in the formation include Belden & Blake Corp., Range Resources and Atlas Resources, according to the release.
Cardinal Energy Group Inc. operates as an independent oil and natural gas producer based in Dublin, Ohio.