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.
