Austin Exploration Reaches Eagle Ford Deals With Halcon & Petromax

Austin Exploration Eagle Ford Map
Austin Exploration Eagle Ford Map

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

Loreto Resources - Eagleford Energy Reach Joint Venture Agreement

Loreto Resources and Eagleford Energy have come to an agreement on a potential joint venture. Loreto will have the opportunity to earn a 50% working interest on two leases in Zavala County, TX. In Petrohawk's Q2 conference call, the company announced it was suspending drilling operations at Red Hawk in favor of other producing areas. Read more in our post titled: Petrohawk Abandons the Red Hawk Field. Watch to see if Loreto Resources and Eagleford Energy are able to make a commercial play in Zavala County. Secondary formations such as the Austin Chalk and Buda may become the primary drilling targets.

Loreto Resources Corporation (OTC: LRTC) ("Loreto") today announced that it has signed a non-binding letter of intent with Eagleford Energy Inc. ("Eagleford"), under which Loreto would have the right to farm in to an up to 50% working interest in Eagleford's net working interests in the Matthews Lease and the Murphy Lease in Zavala County, Texas. Key highlights of the letter of intent are as follows:

  • Farm-in agreement would cover 5,266 gross acres in the Eagle Ford light oil shale play in the Maverick Basin.
  • Drill results on both leases indicate potential for significant volumes of recoverable light oil in the Eagle Ford Shale, Austin Chalk and Buda formations based on core samples, log analysis and analogue modeling by Weatherford International.
  • The Matthews Lease is contiguous to the Petrohawk Energy Corporation Red Hawk Land Block, which has shown average initial production rates per well from wells targeting only the Eagle Ford Shale of 375 barrels of oil per day, according to Petrohawk.
  • Accelerated work program currently anticipated to include (i) the completion, fracturing and tie in of the Matthews/Dyami #1-H horizontal test well with up to a 15 stage fracture stimulation utilizing a Baker Hughes shot point sleeve, (ii) drilling of a second vertical well on the Murphy Lease which is currently drilling; and (iii) the fracturing, tie in and completion of two Murphy vertical wells.

Read the full press release at prnewswire.com