2010-08-31-2010-08-23-2010-09-08

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
4MM
Description

Acquired Texas limited liability corporation, with two primary assets consisting of Matthews & Murphy leases in Zavala County, Texas.

Eagleford Energy Inc., Toronto, (OTCBB EFRDF) has closed the acquisition of Dyami Energy LLC, a Texas limited liability corporation, for US$4.1 million.

Eagleford issued 3.4 million units at US$0.90 each for US$3.1 million to acquire Dyami's outstanding membership interests and will assume US$960,000 in debt.

Dyami's two primary assets consist of the Matthews and Murphy leases in Zavala County, Texas. The first asset involves a 75% working interest (56.25% net revenue interest after royalties) before payout, which reduces to a 61.50% working interest (46.125% net revenue interest after royalties) after payout, in approximately 2,629 gross acres. The second asset involves working interests ranging from 90% to 97% (net revenue interests after royalties ranging from 67.5% to 72.75%) in approximately 2,637 gross acres.

The acreage is part of the Maverick Basin of southwest Texas, and is downdip from the northern boundary of the Smackover-Austin-Eagle Ford total petroleum system.

The Matthews lease is surrounded by Petrohawk Energy Corp.'s Red Hawk block, where Petrohawk has recently announced initial production of 355 barrels a day of oil from a horizontal well drilled on its Mustang Ranch "C" #1H location. The Murphy lease is approximately 11 miles northeast of Chesapeake Energy Corp.'s recently announced initial production of 930 barrels a day from its Traylor North 1-H well.

Eagleford Energy's Zavala County, Texas mineral property interests now include a 85% working interest before payout (69% working interest after payout) in the Matthews lease comprising approximately 2,629 gross acres of land and working interests ranging from 90% to 97% in the Murphy lease comprising approximately 2,637 gross acres.

Dyami vice president, operations, Eric Johnson says, "The successes of the majors in neighboring leases and the blanket nature of the Eagle Ford shale support our own data and correlative logs indicating we are on track to have our own successes. We are also looking forward to expanding the play by testing the Edwards formation below the Eagle Ford and analyzing fresh data on a heavy oil field found on our Matthews Lease, where prior engineering studies delineate approximately 150 million barrels of heavy oil in several San Miguel stacked sands."