Cardinal Energy Group, Inc. sold $3.5 million of 12% senior secured convertible notes maturing December 31, 2015 to accredited investors.

Due to the placement being oversubscribed, the Company will be placing an additional $1.5 million with accredited investors, bringing the total amount to $5 million. The additional notes will be issued at the same terms. Proceeds will be used to re-work and recomplete its 78 wells located in Texas, fund strategic acquisitions, and for working capital.

The Senior Secured Convertible Notes bear interest at a rate of 12.0% per year, payable on July 31st and January 31st until they mature on December 31, 2015 (the "Maturity Date") or are converted. In addition, holders of the Senior Secured Convertible Notes will be paid on or prior to the 10th day of each month following the close of a calendar quarter a "Net Revenue Interest" payment equal to 2% of the net proceeds from the operation of the projects as determined by the Company. Each individual holder will receive their proportional share of such payments in the same ratio as their share of principal bears to the initial maximum amount of the Offering. Cardinal Energy will make the Net Proceeds payments in cash. The Conversion Price of the Senior Secured Convertible Notes is $1.00 per share at which price each $1.00 of principal and unpaid interest can be converted into one share of our common stock. The outstanding principal and associated unpaid interest on the Senior Secured Convertible Notes may be converted, in whole or in part, into our common stock at any time. The Conversion Price is subject to adjustment for stock splits, dividends and combinations.

Timothy Crawford, CEO of Cardinal Energy, stated, "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 acted as the sole placement agent for the private placement of the Notes.