HOUSTON, Dec. 5, 2012 (GLOBE NEWSWIRE) -- Eagle Ford Oil & Gas Corp. (OTC Markets:ECCE), a growing independent oil and gas exploration and production company, announced today they have received a memorandum of understanding (MOU) for financing the drilling on the Company's 3,684 acre leasehold in Frio County, Texas.
The non-binding MOU is from an established provider of capital that will provide a total of $16.5 million. The capital will be used to fund phase one of a three part drilling program to drill through the Austin Chalk, Eagle Ford Shale and Buda Limestone formations on the leasehold and provide working capital to cover certain general and administrative costs. The Company is in the process of providing due diligence requests in order to finalize the funding commitment.
As previously announced, the Company acquired an 85% working interest in 3,684 acres in Frio County, Texas located south of San Antonio, Texas. The purchase price for the acreage was $6.26 million and is funded by project finance from a private fund.
The Company's technical team, headed up by Dr. Ronald Bain, is very encouraged by the success of operators on surrounding acreage. These operators are enjoying a nearly 100% success rate in drilling commercially viable wells in all three formations that are present on the Company's leasehold. Dr. Bain notes that some of the wells drilled on contiguous acreage are offset wells to ones the Company will be drilling once financing is secured.
Management Comments
Mr. Paul Williams, CEO of Eagle Ford Oil and Gas, said, "This MOU is from a well-known, reputable international finance team with a history of funding successful management teams with sound development programs and it's gratifying to know they think this lease has as much potential as we do. We are currently in the process of providing lease information and technical studies. We hope to have that done in the near future allowing us to move towards financing the project and begin drilling operations."
About Eagle Ford Oil & Gas Corporation
Eagle Ford Oil & Gas Corp. engages in exploration and development of oil and gas production properties. The Company specializes in acquiring, exploring and developing oil and gas producing assets in the Gulf Coast region of Texas and Louisiana. Eagle Ford Oil & Gas has a team comprised of senior professionals with distinguished records of achievement and success in the targeted focus area.
Forward-Looking Statements
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of ECCE officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future ECCE actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and ECCE has no specific intention to update these statements.