2011-06-30-2011-06-22-2011-06-22

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
8MM
Description

Acquired company with assets in Gulf Coast of Texas & Louisiana.

Eagle Ford Oil & Gas Corp., Houston, (OTCBB: ECCE) has acquired Houston-based, privately held Sandstone Energy LLC for approximately $8 million in stock.

Eagle Ford issued 17.86 million shares at approximately US$0.45 each. Sandstone shareholders now hold a 82%-percent in Eagle Ford.

Sandstone focused on oil and gas properties along the Gulf Coast of Texas and Louisiana. It has a 38.75% working interest in approximately 2,400 acres in Lee County, Texas. The company currently has two wells producing oil, the Vick #2 and the Alexander #1 on this property. These are operated by a third party. Both wells are in the Austin chalk.

Sandstone plans to develop more than 20 wells on this property.

Eagle Ford chief executive Paul Williams says, "The acquisition of Sandstone and the subsequent ability to raise capital will provide Eagle Ford the ability to grow our company and achieve sustainable profitability. The properties from Sandstone, as well as the prospects, will provide our company with much of the needed cash flow to achieve our goals."