Eagle Ford Oil & Gas Corp., Houston, (OTCBB: ECCE) has completed a acquisition of prospective acreage in Frio County in South Texas in the heart of the Eagle Ford shale oil and gas play for an undisclosed seller for $6.26 million.
Eagle Ford Oil has acquired an 85% working interest in 3,684 acres in hydrocarbon rich properties south of San Antonio. The acreage lies within the historic Pearsall Field where more than 200 million barrels of oil equivalent have been produced from the prolific Austin chalk, sourced by the Eagle Ford shale.
Current success of industry activity in the immediate area demonstrates a high degree of prospectivity in the Austin chalk, Eagle Ford and Buda lime, all of which are primarily black oil reservoirs. Substantial legacy well data within and adjacent to the acreage clearly indicate the presence of effective fracture systems in all three reservoirs.
The company has rights to all formations including the deeper Pearsall shale, a condensate-rich gas reservoir which the industry has just begun to exploit in the area.
Eagle Ford Oil funded the deal from a private fund.
Eagle Ford Oil chief executive Paul Williams says, “This acquisition is the foundation for future growth that we have been looking for since we completed the merger between Sandstone and Eagle Ford last year. The fact that the surrounding fields have a 100% success rate for wells in the three different formations means we have several years of developmental drilling with little geological risk."