Austin Exploration recently completed two farm out deals on the company's ~5,000 acres in the Eagle Ford.
The first deal was signed with Halcon Resources and included over 4,200 acres in the Birch Prospect in Burleson County. Halcon paid $1.9 million upfront for an 18 month drilling option and will gain a 70% interest in the block by funding the next three Eagle Ford wells ($24-27 million cost).
The second farm out deal was signed with Petromax and covers 645 acres in the Birch-Loan Oak unit in Burleson County. Petromax will fund the first horizontal Eagle Ford well in the unit and will earn a 70% interest in the prospect.
Wells in both areas are estimated to cost $8-9 million. Halcon and Petromax will fund approximately $32-36 million in Eagle Ford wells to earn a 70% interest in the respective acreage. The deals value Austin Exploration's acreage at over $3,000 per acre.
Austin Exploration had drilled one vertical well on the property to date. The Krueger #1 encountered seven hydrocarbon bearing zones and a 270 ft thick portion of the Eagle Ford. The well was drilled to a depth of 9,325 ft.
Read more about the company at austinexploration.com