Eagle Ford O&G to Buy Tx. Property
Eagle Ford O&G has signed an agreement to purchase 60.5% Working Interest in a Texas oil field currently producing from 75 wells with plans to drill up to 20 additional wells beginning in 2012. Under the executed Letter of Intent, ECCE and seller have agreed to a purchase price of $21 million plus 3 million warrants with a strike price of 50 cents. The property immediately becomes a key asset allowing the company to move forward with a growth strategy focused on oil properties along the Texas, Oklahoma and Louisiana production corridor.
"This acquisition will immediately increase Eagle Ford's daily net production by 350 barrels and creates a path for additional acquisitions and drilling for 2012," said Paul Williams, CEO of Eagle Ford. "Market demand for oil and gas will always be steady for a domestic producer. We are very excited about the opportunities this opens up for the company as we expand and begin to utilize Eagle Ford's deep oil and gas experience and corporate finance in our next phase of growth."