TORONTO, Dec. 9, 2013 /PRNewswire/ - Eagleford Energy Inc.
(OTCBB: "EFRDF") ("Eagleford Energy" or the "Company"), announces
that together with its wholly owned subsidiary, Eagleford Energy,
Zavala Inc., ("Eagleford Energy") has entered into a Joint
Development Agreement with Stratex Oil and Gas Holdings, Inc.,
("Stratex") (OTCBB: STTX) to facilitate the exploration and
development of the oil and gas resources within and underlying the
Matthews Lease, a 2629 acre tract of land in Zavala County, Texas.
In exchange for Stratex assuming responsibility to make all
payments required to maintain the Matthews Lease in good standing
and fracture completing the Matthews #1-H in 15 stages, (the
"Initial Operation"), Stratex earns a 66.67% interest before pay
out and 50% interest after pay out in the well. Thereafter Stratex
and Eagleford Energy will each enjoy a 50% working interest in the
Matthews Lease (excluding an 80 acre tract around the Matthews #3
wellbore which is being retained by Eagleford Energy) with Stratex
as the operator. As consideration for the rights granted to
the Stratex under the Joint Development Agreement, Stratex agreed
to pay $300,000 as follows: (i)
$150,000 was delivered on
December 4, 2013 to the lessors under
the Lease, on behalf of Zavala,
(ii) $50,000 was delivered to
Eagleford on December 4, 2013 and
(iii) $100,000 will be delivered to
Eagleford on or before December 31,
2013.
Stratex is an independent energy company focused
on the exploration, acquisition, and production of oil and gas.
Stratex's core operating areas are the Williston Basin in North Dakota and Montana, and the Denver-Julesburg Basin in
Colorado. In the Williston Basin, Stratex focuses on oil
production from multiple zones including the Bakken Shale and Three
Forks Sanish Formations. In the Denver-Julesberg Basin Stratex
focuses on the Niobrara and Codell Formations. Stratex engages
geologists, petroleum engineers, and geophysicists with years of
relevant industry experience in the basins where the Company
operates. Stratex is in the process of concluding a detailed frac
design and completion plan on the Matthews #1-H and Eagleford
Energy looks forward to Stratex commencing the Initial Operation
with the expectation that well will produce oil in paying
quantities and drive cashflow for Eagleford Energy and Stratex.
Following which further exploitation of the Matthews Lease with its
multi-stacked formations is expected to roll out.
Eagleford Energy had previously drilled the Matthews #1-H and
the Matthews #3. The Matthews #1-H was drilled to a total measured
depth of 8,500 feet, of which over 5100 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 3300 feet through the Eagle Ford
formation. A shot point sleeve from Baker Hughes (NYSE: BHI)
was installed to protect the well bore and facilitate a multi stage
frac.
The Matthews #1-H was logged extensively and 36 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. (NASDAQ: WFT)
and the sidewall cores analyzed by Core Laboratories (NYSE: CLB)
and Weatherford. Subsequently
Ryder Scott Company, L.P. utilized this information among other
data obtained to prepare an evaluation of the Contingent Resources
associated with the Discovered Petroleum Initially-In-Place in the
Eagleford Shale Formation underlying the Matthews Lease.
The Matthews #3 well was drilled into the
San Miguel formation and a
nitrified acid treatment was injected into the wellbore using a
coil tubing unit to improve conductivity around the wellbore,
increase productivity and satisfy a condition of the lease purchase
agreement. The well produced heavy oil into tanks at surface until
emulsion caused by the nitrogen and acid plugged the wellbore. It
is planned to soon clean out the wellbore and resume production.
Dawsey Operating, LLC reported that, "The data gathered from
drilling this well and the completion results indicate enhanced
recovery processes for this heavy oil can sustain production of the
field. This new data also supports prior information about
the oil in place and the ability to produce significant amounts of
oil from the reservoir."
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.
