Marathon Oil reaches an agreement to buy Eagle Ford Shale Acreage for $3.5 billion ($24,822 per acre without consideration for production) from Hilcorp Resources.  Industry experts peg acreage value at approximately $21,000 per acre when considering production. [quote]Marathon Oil Corporation (NYSE: MRO) announced today it has reached a definitive agreement with Hilcorp Resources Holdings, LP to purchase its assets in the core of the Eagle Ford shale formation in Texas in a transaction valued at $3.5 billion subject to closing adjustments, customary terms and conditions, and Hart-Scott-Rodino approval. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP. Along with other transactions expected to close by the end of 2011, Marathon's Eagle Ford acreage position is expected to more than double to 285,000 net acres. The Hilcorp transaction is expected to close Nov. 1, 2011 with an effective date of May 1, 2011. Hilcorp acreage acquisition highlights:

Approximately 141,000 net acres (217,000 gross) primarily in Atascosa, Karnes, Gonzales and DeWitt counties in Texas (see attached map). Potential opportunity to acquire approximately 14,000 additional net acres through tag-along rights and other leasing.

•Approximately 90 percent operated with 65 percent average working interest. As of May 1, there were 36 wells producing approximately 7,000 net (17,000 gross) barrels of oil equivalent (boe) per day, of which 80 percent is liquids (three-fourths of which is crude oil and condensate)

10 additional wells drilled and awaiting completion. Six rigs currently operating and two dedicated hydraulic fracturing crews

Total net risked resource potential of 400 - 500 million boe with upside potential from additional downspacing and other stacked pay potential. Potential to book up to 100 million boe of proved reserves by the end of 2011.

Year-end production expected to be approximately 12,000 net boe per day. Production expected to increase to approximately 80,000 net boe per day by 2016

Read the full press release at Marathon.com