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,
, 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
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
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
, the Austin Chalk, the Eagle Ford and the
. The logs were interpreted by Weatherford International Ltd. (
) (NYSE:WFT) and the sidewall cores were sent for analysis by Core Laboratories (NYSE:CLB) and
. These reports and analysis indicate a significant amount of oil in place in the Austin Chalk, Eagle Ford shale and
formations as well as the
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.