JEDI to Snaps Up Eagle Ford Assets

JGC Energy Development ("JEDI"), a wholly-owned subsidiary of JGC, signed a purchase and sales agreement on June 14th to acquire 10% ownership of the Eagle Ford Shale oil window assets, located in south Texas, from TriTech I, LLC ("TriTech"). JEDI is headquartered in Houston, Texas.

The ownership of the assets is scheduled to be transferred from TriTech to JEDI by the end of July, on completion of due diligence. Chesapeake, operator and 50% owner of the assets, is a leading company in the exploitation of unconventional resources, and has established a predominant position in various unconventional plays such as Eagle Ford Shale, Anadarko Basin, Permian Basin, Niobrara Shale and Utica Shale.

With the advancement of development technologies, United States production of shale gas has been skyrocketing, and shale oil is also being produced and developed in full swing in the Bakken Shale region extending from the northern United States up into Canada. Eagle Ford has also been yielding shale oil, and many oil companies have been ramping up the development of the region. The area acquired by JGC consists of approximately 63,000 acres (approximately 253 square kilometers), on which Chesapeake holds 50% and other American oil company holds 40%, while the 10% formerly held by TriTech will be transferred to JGC.