By OGJ editors
HOUSTON, Nov. 29 -- Marathon Oil Corp. plans to pay Denali Oil & Gas $10 million in a transaction that marks Marathon’s entry into the Eagle Ford shale formation in the South Texas counties of Wilson and Atascosa.
Along with paying $10 million, Marathon agreed to drill and complete four wells to earn 17,000 net acres.
In addition to the transaction announced on Nov. 29, Marathon also said it has two options to purchase Denali's remaining net acres in the Eagle Ford shale. The total value would depend on how much acreage Marathon buys in the future.
Dave Roberts, Marathon’s executive vice-president, upstream, said a key element for Marathon is “targeting unconventional, primarily liquids-rich, resource plays providing low-risk, scalable growth.”