TORONTO, June 14 /PRNewswire-FirstCall/ - Eagleford Energy Inc. (OTCBB "EFRDF") ("Eagleford Energy" or the "Company"), announces that it has acquired from an arms length party a 10% working interest (7.5% net revenue interest) before payout and a 7.5% working interest (5.625% net revenue interest) after payout of production of the sum of $15,000,000 gross (the "Interest") in a Mineral Lease comprising approximately 2,629 gross acres of land in Zavala County, Texas (the "Matthews Lease"). As consideration for the Interest the Company paid USD $200,000, satisfied by $25,000 paid in cash on closing and a $175,000 5% secured promissory note. The acquisition has closed in escrow pending receipt of Defensible Title to the Interest in the Matthews Lease.
The Matthews Lease ------------------
The Matthews Lease is located in Zavala County which is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies (USGS) north boundary of the Smackover-Austin-Eagle Ford total petroleum system. Although the property comprises multiple prospective stacked formations, the two initial formations on the Company's newly acquired Interest in the Matthews Lease targeted for production are light sweet crude oil from the Eagle Ford Shale and heavy oil from the San Miguel formation. The Eagle Ford Shale, which blankets the region, is located directly below the Austin Chalk formation at approximately 4,600 feet, and above the Edwards limestone formation. The Matthews Lease is surrounded by Eagle Ford Shale acreage leased and drilled by Petrohawk Energy's (NYSE: HK) 87,000 acre "Red Hawk" land block, and situated in the "oil window" section of the Eagle Ford Shale play. Petrohawk Energy reported oil production rates of 350 BOPD on their recently completed initial well on Red Hawk and are in the process of drilling an additional well on the property. The San Miguel formation contains 5 stacked sands including A, B, C, D1 and D2 with estimated original oil in place of approximately 150 million barrels.
About Eagleford Energy Inc. ---------------------------
Eagleford Energy is a growth-oriented exploration and production company with a definitive focus on growing reserves, cash flow, and net asset value per share by drilling for oil and gas in Texas. The company is actively pursuing leases in Zavala County and throughout the region with a primary objective of obtaining high-demand Eagle Ford Shale acreage for follow up exploration and production.
Eagleford Energy shares are traded on the Over the Counter Bulletin Board (OTCBB) under the symbol of "EFRDF". There are approximately 24.8 million shares issued and outstanding in the capital of the Company.
Certain information regarding the Company in this news release may constitute forward-looking statements under applicable securities laws. The forward-looking information includes, without limitation, statements regarding impact from the shut-in of facilities, the applicability of royalty reductions, and impact on future funds flow. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to the Company and the industry in which it operates as well as certain assumptions as specifically outlined in the release above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of the Company's management at the time the information is released and the Company disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities laws.
SOURCE Eagleford Energy Inc.