Venado Oil & Gas LLC

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Description

Venado Oil & Gas LLC purchased the non-operated working interest from its 50% partner in Horseshoe Project in Lee County, Texas for an undisclosed sum.

Venado Oil & Gas LLC has purchased the non-operated working interest from its 50% partner in Horseshoe Project in Lee County, Texas for an undisclosed sum.

Venado now controls a contiguous 124,000 gross operated acre position in its Horseshoe Project, a leasehold which represents multi-play liquids-rich opportunity offsetting the 1.3 billion barrel Giddings Austin Chalk field. During the first quarter 2013, Venado plans to further delineate the Eagle Ford and to test the Buda and Pearsall formations. Early indications from the company’s and offset operators’ Eagle Ford wells suggest estimated ultimate recoveries in excess of 300,000 barrels of oil equivalent (BOE) per well.

Venado expects a rate of return in excess of 50% on a $6 million investment.

Scott Garrick, chief executive Venado Oil & Gas, said, "Our first two wells confirm a very organically-rich, high-carbonate, low-clay, brittle Eagle Ford formation. We are pleased to have closed this acquisition and plan to drill a series of long extended laterals in the Eagle Ford formation with 20 plus frac stages. This transaction is a great opportunity to increase our leasehold and better align the company with a private equity strategy."

Venado Oil & Gas is a privately-held energy company based in San Antonio, Texas with assets in the Gulf Coast and Permian Basin. The company is backed by private equity funds, EnCap Investments LP and Riverstone Holdings LLC.