A subsidiary of San Marcos, Texas-based Baron Energy, Inc. has purchased 8,082 Eagle Ford acres in Frio County, TX, including eight producing leases, for an undisclosed amount. The acquisition was announced by the company in early August of 2014, with an effective date of July 1, 2014.
According to Baron officials, the producing leases have gross production of 204 b/d oil and 180 mcf/d from 14 producers, and a drilling inventory of new wells and recompletions for up to five years. The company is the operator for all of the recently acquired properties.
“This acquisition increases our anticipated consolidated revenue tenfold to approximately $425,000 per month and provides the means to further increase revenue over the next 12 months by drilling new horizontal wells.”
The acquisition satisfies a major goal for Baron, according to Steinocher, providing the company with substantial future growth opportunities. Based on geological analogs, company officials believe new horizontal wells targeting the Austin Chalk could result in initial production (IP) rates of 150-500 b/d oil with 50,000 to 300,000 bbl of ultimately recoverable crude oil per well.
Read more at baronenergy.com