In May of 2014, Oklahoma City-based Panhandle Oil & Gas Inc. signed an agreement with private sellers to acquire a 16% non-operated working interest in 11,100 gross Eagle Ford acres (1,775 net) for just over $80-million.
The properties are located in the core Eagle Ford oil window in La Salle and Frio counties.
The acreage block is held by production, with 52 Eagle Ford wells producing, and six awaiting completion. Five Pearsall wells and one Buda Limestone well are also producing. According to the company, the entire acreage has a drilling inventory of 113 undeveloped Eagle Ford locations.
Panhandle estimates net proved developed reserves are approximately 1.72-million bbls oil, 1.73-million mcf gas and 297,000 bbls NGLs. Reserves for the 113 undeveloped locations, which are projected to have an average effective lateral length of approximately 7000′, are estimated to be 5.57-million bbls oil, 4.58-million mcf of gas and 789,000 bbls NGLs.
Currently, the property is being developed with a one drilling rig program. The operator is Oklahoma City-based Cheyenne Petroleum Company.
The transaction is projected to close by mid-June of 2014, with an effective date of April 1, 2014.
Read more at panhandleoilandgas.com