Eagle Ford O&G Inks LOI for Tx. Stake
Eagle Ford O&G has signed a letter of intent for the acquisition of a 25% non-operated working interest in 5,990 acre lease position in Borden County, Texas. Currently there are plans to drill two wells to test the productivity of the producing zones during the first quarter of 2011. The property has two oil producing formations: the Mississippian Fractured Carbonates and the prolific Wolfberry Formation. The Mississippian well is designed as a tri-lateral horizontal and the Wolfberry well will use multi-stage fracturing techniques to maximize estimated ultimate recoveries. This acreage position will support thirty-seven additional locations.
Eagle Ford Oil & Gas President Rick Adams commented, "This acquisition represents both another step in the execution of our business strategy as well as a major expansion of our reserve position through horizontal drilling and multi-stage fracturing technologies in the Eagle Ford Shale and now the Fractured Mississippian Carbonates and the Wolfberry Formation. We expect the development of this Borden County Play to greatly enhance our growth potential over the next few years. "