Cardinal Energy Group has agreed to purchase from Kansas Petroleum Resources LLC a 100% working interest in oil and natural gas leases in Kansas that cover about 17,000 acres in Pawnee and Hodgeman counties and other operational assets. The wells to be acquired are within the oil producing zones of the Mississippian Lime formation, Lansing-Kansas City limestone formation, the Cherokee Sand Basin and the Permian Chase Group formations. Financial terms of the deal were not released. The acquisition is part of Cardinal’s ongoing plan “to build a portfolio of oil and gas properties in the continental United States that are poised for further development,” the company said. The assets include 3-D seismic surveys, 19 vertical oil-producing wells and two water disposal wells that have been drilled into the Arbuckle formation, according to Cardinal CEO Timothy Crawford. Upon completion of the acquisition, Cardinal’s annual oil production is expected to increase by at least 300 b/d.
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