Eagle Ford Oil & Gas Corp. (OTC: ECCE) received and executed a formal letter of commitment from EM Capital Management , a division of EMCH Investment Corp.
The binding letter of commitment would provide funding in the amount of US $22 million to be used in the initial phase of the development and exploitation of oil and gas assets in the company's acreage in Frio County, Texas, known as the East Pearsall Project.
The financing allows the company to drill its first three to four wells on the acreage and establish production, cash flow and reserves, said Paul Williams, Eagle Ford Oil & Gas’s CEO, in the release.
As previously announced, the company has leased a total of 3,684 acres located in Frio County, Texas. The company has an 85% working interest and is the operator. The acreage lies within the historic Pearsall field and features three formations which are highly productive in the area, the Austin Chalk, Eagle Ford shale and Buda Lime, all of which are primarily black oil reservoirs. The company has rights to all formations and all depths including the deeper Pearsall shale, a condensate rich gas reservoir. Fields surrounding this acreage are currently producing from all three formations with estimated ultimate recovery of between 120,000 and 500,000 barrels of oil per well.
Operators in this surrounding acreage have an apparent 100% success rate in the three formations. Based on nominal 160 acre spacing, the company would have more than 20 well locations for each reservoir.
EMCH Investment Corp. is a privately held investment holding corporation that invests in growth and startup companies in oil and gas, transportation, hospitality, food service, agriculture, manufacturing, distribution, real estate and financial services.
Eagle Ford Oil & Gas Corp. is an independent E&P company engaged in exploration and development of oil and gas production properties. The company is based in League City, Texas.