Eagle Ford Oil & Gas Corp. (Nasdaq: ECCE) provided an update on internal analysis of its leasehold in Frio County, Texas.
As previously announced, the company acquired an 85% working interest in 3,684 acres in Frio County, Texas, located south of San Antonio. The purchase price for the acreage was $6.26 million and is funded by project finance from a private fund.
The company's technical team, headed up by Ron Bain, has done an internal study of the three primary target formations, the Austin Chalk, Eagle Ford shale and Buda Limestone, regarding estimated total oil and natural gas production and estimated net revenue. As reflected in the Frio County reserve report, the company’s 40-well program has potential net revenue of $351 million (10,375 BOE) and its 62-well program, which includes the Pearsall shale, has potential net revenue of $585 million (21,525 BOE).
Austin Chalk
The Austin Chalk formation would require a total of 12 wells to develop the formation. Similar wells in area have a total EUR of 188,000 BOE with a net cost to drill and complete each well of $3 million.
Eagle Ford Shale
The Eagle Ford shale would require six wells to develop the leasehold acreage, net cost per well is estimated to be $5.5 million and similar wells in the region have an EUR of 438,000 BOE.
Buda Limestone
For the Buda Limestone, a total of 22 wells would be needed to develop the formation. Net well cost is estimated to be $3 million with an EUR of 250,000 BOE per well.
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