Cardinal Energy Ltd. (TSX:CJ) entered into a agreement to acquire certain assets in North (Mitsue) operating area for CAD 39.6 million on January 24, 2017. Under the terms, the acquisition will be fully funded through the issuance of approximately 4 million common shares of Cardinal Energy and a cash payment of CAD 4 million. The consideration is subject to customary adjustments. The cash portion of the purchase price is expected to be funded through existing working capital and Cardinal Energy does not expect to assume or incur any additional debt in conjunction with the acquisition. The acquisition is subject to customary closing conditions including the Toronto Stock Exchange and is expected to close in the first quarter of 2017. The acquisition is expected to increase Cardinal's light oil drilling inventory.