Cardinal Energy Ltd. Announces Closing Initial Public Offering

CALGARY, ALBERTA–(Marketwired – Dec. 17, 2013) – Cardinal Energy Ltd. (TSX:CJ) (“Cardinal“) is pleased to announce that it has closed its initial public offering (the “Offering“) of 21,428,571 common shares (“Common Shares“) at a price of $10.50 per Common Share. The gross proceeds from the Offering totalled approximately $225 million.

The Offering was underwritten by a syndicate of underwriters co-led by RBC Capital Markets and CIBC and included GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Scotiabank and FirstEnergy Capital Corp. (collectively, the “Underwriters“).

Cardinal has granted the Underwriters an over-allotment option, exercisable at any time on or before January 16, 2014, to purchase up to an additional 2,142,857 Common Shares at the offering price of $10.50 per Common Share to cover over-allotments, if any. If the over-allotment option is exercised in full, the total gross proceeds of the Offering will be $247.5 million.

The net proceeds from the Offering were used to fund the balance of the purchase price of Cardinal’s acquisition of assets located in Southeast Alberta and to initially repay outstanding indebtedness under Cardinal’s credit facility.

Cardinal has also entered into a new $125 million syndicated borrowing base credit facility comprised of a $115 million syndicated extendible credit facility and a $10 million operating credit facility. The new credit facility is secured by a first floating charge debenture on all of Cardinal’s present and after acquired property. A copy of the new credit facility will be available on the SEDAR website at www.sedar.com under Cardinal’s profile.

Cardinal’s Common Shares are listed on the Toronto Stock Exchange under the symbol “CJ”.

This press release does not constitute an offer of Common Shares of Cardinal for sale in the United States. The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cardinal Energy Ltd.

Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal’s operations are focused in all season access areas in Alberta.