TORONTO, June 14, 2011 /CNW/ - Eagleford Energy Inc. (OTCBB "EFRDF")
("Eagleford Energy" or the "Company") is pleased to announce that it
has performed a nitrified acid injection treatment in the San Miguel
formation on its Matthews/Dyami #3 well. 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. These objectives have been
accomplished. The injection operation was successful and fluid level
measurements within the wellbore are considerably higher which is
indicative of materially improved inflow of oil from the reservoir. The
well is currently undergoing production testing and has been recovering
minimal amounts of treatment water and is primarily producing oil. The
oil gravity is approximately 10 degree API and production rates are
varying due to ambient surface conditions.
Under the terms of a Farmout Agreement announced by the Company on April
8, 2011, the farmee may spend up to $1,050,000 on exploration and
development to earn a maximum of 50% of the Company's working interest
or a 42.50% working interest (31.875% net revenue interest) from
surface to the base of the San Miguel formation on the Company's
Matthews Lease. The farmee earns an initial 21.25% working interest by
paying 100% of the costs to drill, complete, equip and perform an
injection operation on the Matthews/Dyami #3. The farmee may increase
its working interest to 42.5% by spending the entire $1,050,000 on
additional operations on the San Miguel in a good faith effort to
Albert Dawsey of Dawsey Operating LLC stated "We are pleased with the
initial production results from completing this first San Miguel oil
well. 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."
The Company's Matthews Lease comprises 2,629 acres of land in Zavala
County, Texas. Zavala County, Texas is part of the Maverick Basin of
Southwest Texas and downdip from the United States Geological Studies
north boundary of the Smackover-Austin-Eagle Ford total petroleum
system. This area is often referred to as the oil window of the present
Eagle Ford shale play.
About Eagleford Energy Inc.
Eagleford Energy Inc. is a growth orientated oil and gas company with a
focus on growing hydrocarbon reserves, cash flow, and net asset value
per share through exploration and production of mineral properties in
South Texas. There are approximately 34 million shares issued and
outstanding in the capital 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.
For further information:
Eagleford Energy Inc.
Facsimile: 416 364-8244