Earlier this month, the company closed an acquisition of producing oil and gas properties in Webb and Dimmit counties for $13.2 million from an undisclosed private seller. The acquired properties have current net production of 1.2 million cubic feet of gas equivalent per day and 3,700 net acres. The company said that it has acquired new leasehold acreage in Dimmit and La Salle counties totaling more than 60,000 net acres. This new acreage is near the company's existing operations in the two counties.
In total, Escondido has approximately 100,000 net acres of land under lease in the Olmos trend. The company drilled 50 wells in 2005 with 100% success, and plans to drill in excess of 100 wells in 2006. Escondido presently has 4 drilling rigs under contract and active in the three-county area. Net production has grown from approximately 7 million cubic feet of gas equivalent per day from its initial acquisition in January 2005 to approximately 20 million cubic feet of gas equivalent per day.
Escondido was formed in November 2004 by partners William E. Deupree, Mark E. Semmelbeck, J. Kurt von Plonski, and J. David Wrather. EnCap Investments, LP, provides private equity to the company, and Wells Fargo Bank, N.A., provides banking and credit.
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