Loreto, Eagleford Energy to Develop Texas Oil Leases

Loreto Resources has signed a non-binding letter of intent with Eagleford Energy to jointly develop Loreto’s formations in Zavala County, Texas, US.

Under the terms of the agreement, Loreto will have the right to farm in a 50% working interest in Eagleford’s net working interests in the Matthews Lease and the Murphy Lease in Zavala County.

The Matthews Lease covers 10km² and the Murphy Lease covers 10.6km² over the Austin Chalk, Eagle Ford Shale and Buda formations.

The accelerated work programme will include completion, fracturing and tie in of the Matthews / Dyami #1-H horizontal test well, with a 15-stage fracture stimulation using a Baker Hughes shot point sleeve.

It will also include drilling of a second vertical well on the Murphy Lease and the fracturing, tie in and completion of two Murphy vertical wells.