TORONTO, Dec. 9, 2013 /CNW/ - 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
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
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.
For further information:
Eagleford Energy Inc.
Telephone: 832 301 0519