Cardinal Energy Group Inc. (OTC: CEGX) sold its California and Ohio oil and natural gas assets to California Hydrocarbons Corp. on April 22, and will cancel 3 million of its common shares held by California Hydrocarbons, the company said April 24.
Cardinal’s common stock is worth $2 million, the company noted.
Cardinal will focus on Texas oil and natural gas production, the company added.
The company had held partial working interest in 11 oil and natural gas wells in Licking and Knox counties, Ohio, and also held 100% working interest in two Holmes County, Ohio oil wells in 2011, Cardinal said.
Cardinal also had full working interest in two wells in Colusa County, Calif., that year, the company noted.
"The sale of our California and Ohio assets are consistent with our strategy to focus our current and future production in Texas," Timothy Crawford, CEO of Cardinal Energy, said.
He added, "We continue to see significant opportunities to increase our production and reserves from our 78 wells located in Shackelford and Eastland counties. By streamlining our assets and operations, we can more effectively deploy our capital to generate returns to our shareholders."
The Colusa County assets’ sale includes the transfer of a $20,000 cash bond with the state, as well as 3-D data for section 17, Cardinal said.
When the sale is completed, Cardinal will eliminate about $650,000 in balance sheet impairments, the company said.
Cardinal Energy Group Inc. is based in Dublin, Ohio.
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