Texas: Maverick San Miguel farmout completed

Eagleford Energy Inc., Toronto, signed a farmout with an undisclosed farmee from surface to the base of the Cretaceous San Miguel formation on the Matthews lease in Zavala County, Tex., in the Maverick basin.

By OGJ editors
HOUSTON, Apr. 8
– Eagleford Energy Inc., Toronto, signed a farmout with an undisclosed farmee from surface to the base of the Cretaceous San Miguel formation on the Matthews lease in Zavala County, Tex., in the Maverick basin.

The farmee may spend up to $1.05 million on exploration and development of the San Miguel formation to earn a maximum of 42.5% working interest (31.875% net revenue interest). It may earn an initial 25% of Eagleford Energy’s working interest in the San Miguel by paying the costs to drill, complete, equip, and perform an injection on a vertical test well to a depth of 3,500 ft.

After the performance of the initial test well, the farmee may increase its working interest to 50% of Eagleford Energy’s working interest by spending the entire $1.05 million on additional operations on the San Miguel in a good faith effort to produce hydrocarbons.

Eagleford Energy’s Matthews and Murphy leases are situated in northeastern Zavala County. The San Miguel formation is known to contain heavy oil in the area and has been the subject of thermal recovery attempts in previous years (OGJ Online, July 23, 2008).

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