Cardinal Energy Group Inc. (OTC: CEGX) sold $3.5 million of 12% senior secured convertible notes to investors, the company said April 22.
The notes will mature Dec. 31, 2015, the company said, noting that an additional $1.5 million of notes was placed with investors, making the total amount $5 million.
The additional notes were issued under the same terms, Cardinal Energy said, noting that all proceeds will go toward reworking and recompleting Cardinal Energy’s 78 Texas wells. Proceeds will also fund strategic acquisitions and working capital, and they will be paid in cash, the company added.
The notes’ conversion price is $1 per share, the company said.
CEO Timothy Crawford said, "We are encouraged with the strong investor interest we received for our convertible preferred offering. With rising production and a number of new wells expected to come online throughout 2014, we expect to generate attractive returns with this additional capital."
Syndicated Capital was the sole placement agent for the sale, the company said.
Dublin, Ohio-based Cardinal Energy Group Inc. produces dry gas in California and oil in Texas.
Recommended Reading
Novo II Reloads, Aims for Delaware Deals After $1.5B Exit Last Year
2024-04-24 - After Novo I sold its Delaware Basin position for $1.5 billion last year, Novo Oil & Gas II is reloading with EnCap backing and aiming for more Delaware deals.
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
EIA: Permian, Bakken Associated Gas Growth Pressures NatGas Producers
2024-04-18 - Near-record associated gas volumes from U.S. oil basins continue to put pressure on dry gas producers, which are curtailing output and cutting rigs.
Benchmark Closes Anadarko Deal, Hunts for More M&A
2024-04-17 - Benchmark Energy II closed a $145 million acquisition of western Anadarko Basin assets—and the company is hunting for more low-decline, mature assets to acquire.
‘Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West
2024-04-09 - Aethon Energy’s COO described challenges in the far western Haynesville stepout, while other operators opened their books on the latest in the legacy Haynesville at Hart Energy’s DUG GAS+ Conference and Expo in Shreveport, Louisiana.