HOUSTON, April 15, 2013 (GLOBE NEWSWIRE) -- Eagle Ford Oil & Gas Corp. (OTCMarkets:ECCE), a growing independent oil and gas exploration and production company, has received and executed a formal letter of commitment from EM Capital Management, a division of EMCH Investment Corporation.
The binding letter of commitment would provide funding in the amount of $22 million to be used in the initial phase of the development and exploitation of oil and gas assets in the Company's acreage in Frio County, Texas known as the East Pearsall Project.
As previously announced, the Company has leased a total of 3,684 acres located in Frio County, Texas. The Company has an 85% working interest and is the operator. The acreage lies within the historic Pearsall Field and features three formations which are highly productive in the area, the Austin Chalk, Eagle Ford Shale and Buda Lime, all of which are primarily black oil reservoirs. The Company has rights to all formations and all depths including the deeper Pearsall Shale, a condensate rich gas reservoir. Fields surrounding this acreage are currently producing from all three formations with estimated ultimate recovery of between 120,000 and 500,000 barrels of oil per well. Operators in this surrounding acreage have an apparent 100% success rate in the three formations. Based on nominal 160 acre spacing, the Company would have more than 20 well locations for each reservoir.
EMCH Investment Corporation is a privately held investment holding corporation that invests in growth and startup companies in oil and gas, transportation, hospitality, food service, agriculture, manufacturing, distribution, real estate and financial services.
Management Comments
Mr. Paul Williams, CEO of Eagle Ford Oil and Gas said, "We are obviously excited about executing this letter of commitment, we have been actively searching for the financing that will allow us to effectively begin development of our East Pearsall Project in a manner that if most beneficial to our shareholders. This financing allows us to drill our first three to four wells on the acreage and establish production, cash flow and reserves and make this acreage the cornerstone for Eagle Ford Oil and Gas."
Mr. Erick Moore, Managing Partner of EM Capital said; "We are very excited about this opportunity, Eagle Ford Oil & Gas represents the kind of company we want to partner with, an excellent management team that includes some of the industry's leading technical experts. Combine this with their East Pearsall Project which holds incredible potential based on well results from operators in surrounding acreage and you have a startup company with incredible near term growth potential."
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.