Eagleford Energy Reacquires Matthews Lease
TORONTO, Sept. 12, 2013 /PRNewswire/ – Eagleford Energy Inc. (OTCBB “EFRDF”)
(“Eagleford Energy” or the “Company”), announces that it has entered
into a settlement agreement with the mineral rights owners of the
Matthews Lease, a property comprising approximately 2,629 gross acres
of land in Zavala County, Texas (the “Matthews Lease”). A new lease has
now been signed with the Company’s subsidiary, Eagleford Energy,
Zavala, Inc. effective September 1, 2013 with a Primary Term expiring
January 31, 2014 (subject to certain extensions) and can be maintained
through the implementation of a continuous drilling program and the
provision of certain royalty payments.
The Company had previously drilled 2 wells on the Matthews Lease and
conducted extensive science in order to devise an exploitation
program. The Matthews #1-H was drilled, by Dawsey Operating LLC to a
total measured depth of 8,500 feet, of which over 5,100 feet was
vertical depth into the Buda formation, directly below the Eagle Ford
shale. The well was whipstocked at the top of the Austin Chalk
formation, found directly above the Eagle Ford formation, and drilled
with an 800 foot curve into the Eagle Ford shale. Drilling continued
horizontally such that the well bore was extended 3,300 feet through
the Eagle Ford formation. A shot point sleeve from Baker Hughes
(NYSE:BHI – News) was installed to protect the well bore and facilitate
a multi stage frac.
The Matthews #3 well was drilled into the San Miguel formation and a
nitrified acid treatment was injected into the wellbore. Production
testing recovered minimal amounts of treatment water and primarily
produced oil. The data gathered from drilling this well and the
completion results supports prior information about the large amount of
heavy oil in place. It also indicates the ability to produce
significant amounts of heavy oil from the reservoir through enhanced
recovery processes to sustain production of the field.
The Matthews #1-H well was logged extensively and numerous sidewall
cores were taken from 4 key formations in descending order, the San
Miguel, the Austin Chalk, the Eagle Ford and the Buda. The logs were
interpreted by Weatherford International Ltd. (Weatherford) (NYSE:WFT)
and the sidewall cores were sent for analysis by Core Laboratories
(NYSE:CLB) and Weatherford. These reports and analysis indicate a
significant amount of oil in place in the Austin Chalk, Eagle Ford
shale and Buda formations as well as the San Miguel mentioned above.
Reports show 350 feet of Upper and Lower Eagle Ford shale of which
approximately 135 feet is the organically richer lower Eagle Ford with
total organic carbon (TOC) as high as 8.5% and porosity and
permeability in a similar range of published reports of other
successful wells producing in the Eagle Ford.
The Austin Chalk measured approximately 200 feet thick and was
characterized by very high levels of porosity indicating a vastly oil
saturated zone consistent with elevated oil cuts and very little to no
water to be produced from the Austin Chalk.
The Buda measured approximately forty five feet of medium oil saturation
in what appeared to be healed fractures.
The Company is awaiting reports to conclude a detailed frac design and
completion plan on the Matthews #1-H and continue with its exploitation
plans for the Austin Chalk, Buda and San Miguel formations which may
entail a strategic alliance or “farm-in” arrangement with another oil
and gas operator or further financing 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,
projections or estimates made by us and our management in connection
with our business operations. 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.