Cardinal Energy Group Inc. (OTCBB: CEGX) has signed a binding letter of intent with Tarcat Inc. for the purchase of a 100% working interest in existing wells located in South Central Kentucky.

The existing well numbers 1, 3, 8, 9, 13, 20, 25, TD#1, TD#2 are located on tracts 4 and 5 of the property known as the Froggett Farm. Some of the wells on this lease have a documented history of up to 100 barrels of oil, according to the release.

The agreement set forth by the binding letter ...