Energy Hunter Resources Acquires Eagle Ford Assets
Dallas-based Energy Hunter Resources has acquired Eagle Ford assets in Karnes County.
Related:Japanese Company Buys Eagle Ford Assets
In a press release this morning, Energy Hunter Resources announced completion of a private placement of its common stock worth approximately $3.15 million. The company used a portion of the proceeds to purchase two separate lease blocks in the Eagle Ford.
The deal includes approximately 500 net acres located along the Karnes Condensate Trend in Karnes County, Texas. At this time, the company has made no drilling commitments on this acreage, but indicated the prospect for drilling in Eagle Ford Shale and the Austin Chalk in 2017. The company estimates that 14 wells can be drilled in the lower Eagle Ford formation between the two prospects, as well as an additional 10 wells in the upper Eagle Ford.
“For more than 30 years, members of the new Energy Hunter team and I have worked in and around many of these fields. We therefore used our knowledge and experience in these fields and allocated a portion of the proceeds from the private placement to acquire two lease acreage blocks in the heart of the Eagle Ford shale in Karnes County, Texas. We will continue to explore and analyze similar opportunities and provide updates as we begin development of our new acreage position in the Eagle Ford Shale.”
Highlights of the deal include:
- Completed private placement of 3,150,000 shares issued at a subscription price of$1.00 per share
- Private placement oversubscribed by approximately 25 percent
- Total gross proceeds of approximately $3.15 million
- Acquired two acreage lease blocks totaling approximately 500 net acres located in the heart of the Eagle Ford shale in Karnes County, Texas along the Karnes Condensate Trend
- Combined recoverable reserves estimated at 16 MMBOE
- Total estimated ultimate recoveries range between 400 MBOE and 620 MBOE per well
- At current strip pricing, adjacent wells have reached payout in less than one year with ROI’s greater than 80 percent