Eagle Ford Oil & Gas Corp. has signed a letter of intent to acquire a 25% nonoperated working interest in 5,990 acres in Borden County, TX, the Houston-based independent said Wednesday.
Currently there are plans to drill two wells to test the productivity of the producing zones during the first quarter of 2011. The property has two oil producing formations: the Mississippian Fractured Carbonates and the Wolfberry Formation. The Mississippian well is designed as a trilateral horizontal and the Wolfberry well will use multistage fracturing techniques to maximize estimated ultimate recoveries. The acreage position will support 37 additional locations, the company said.
"This acquisition represents...a major expansion of our reserve position through horizontal drilling and multistage fracturing technologies in the Eagle Ford Shale and now the Fractured Mississippian Carbonates and the Wolfberry Formation," said Eagle Ford President Rick Adams. "We expect the development of this Borden County play to greatly enhance our growth potential over the next few years."
The company's primary area of focus is the Eagle Ford Shale in South Texas, but it is expanding its footprint to include similar opportunities in the Permian Basin that offer reserve diversification.