Eagleford Drills Initial Shale Test Well in Zavala County

Eagleford announced that its wholly owned subsidiary, Dyami, has successfully drilled the Mathews/Dyami #1-H, an initial Eagle Ford shale test well, on its 85% working interest (69% after payout) Matthews Lease comprising 2,629 acres of land in Zavala County, Texas.

The well was drilled, by Dawsey Operating LLC to a total measured depth of 8,500 feet, of which over 5100 feet was vertical depth into the Buda formation, directly below the Eagle Ford shale. The well was whipstocked at the top of the Austin Chalk formation, found directly above the Eagle Ford formation, and drilled with an 800 foot curve into the Eagle Ford shale. Drilling continued horizontally such that the well bore was extended 3300 feet through the Eagle Ford formation. A shot point sleeve from Baker Hughes (NYSE:BHI - News) was installed to protect the well bore and facilitate a multi stage frac.

The well was logged extensively and 36 sidewall cores were taken from 4 key formations in descending order, the San Miguel, the Austin Chalk, the Eagle Ford and the Buda. The logs are being interpreted by Weatherford International Ltd. (NASDAQ:WFT - News) and the sidewall cores have been sent for analysis by Core Laboratories (NYSE:CLB - News) and Weatherford. The Company is awaiting the reports to conclude a detailed frac design and completion plan.

Eric Johnson, VP Operations at Dyami Energy LLC, the Texas based operating subsidiary of Eagleford Energy, stated, "Dawsey Operating did an excellent job of getting this well down within our cost expectations. Now, subject to an extensive analysis of the reports from Weatherford and Core Labs, we plan to capture a good portion of the reservoir's production potential by applying 15-stage fracture stimulation through the Baker Hughes shot point sleeve and into the heart of the lower Eagle Ford Shale formation. Throughout the play, fracing successes have been reported targeting the lower section of the Eagle Ford shale."

The Company's Matthews Lease in Zavala County is situated adjacent to the Redhawk land block under development by Petrohawk. Zavala County, Texas and is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.


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