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Cardinal Energy Executes $2.5M Credit Line Term Sheet

March 17, 2015, 07:00 AM
Filed Under: Energy

Cardinal Energy Group, Inc. has executed a term sheet for a $2,500,000 revolving credit line from a prominent New York based Private Equity Firm and expects to close and draw down on the facility within 30 days. The credit facility has been earmarked to drill and complete wells on the Bradford A & B Leases and the Bradford West Lease.

"This credit facility will be used to drill and complete the last 4 of 21 wells on our Bradford A & B Leases, of which Cardinal will own 47% the Leases. We will also use the credit facility to drill and complete 20 new wells on our recently acquired Bradford West Lease that is adjacent and to the West of our Bradford A & B Leases," Timothy Crawford, CEO of Cardinal comments. "We have been able to keep our finding and lifting costs below $15 per barrel drilling and completing these shallow oil wells making them very profitable with lower oil prices. We also have the ability to use the credit facility to purchase additional acreage for new drilling prospects. We are pleased with the terms and conditions of this credit facility as it positions us to take advantage of the distressed assets that are coming onto the market at deep discounts from companies with weak or weakened balance sheets due to the downturn."

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