Plains to Acquire More Eagle Ford Assets

Plains Exploration & Production Company (PXP) will acquire interests in about 60,000 net acres in the Eagle Ford oil and gas condensate windows in South Texas for $578m.

The Eagle Ford properties have net resource potential of about 140 to 175 million BOE, projected net production capability of about 2,000 BOE a day.

The assets also have a year-end 2011 production target exit rate of about 5,000 BOE a day net to PXP.

PXP chairman, president and CEO James C Flores said that the acquisition would allow them to aggressively expand their large, high-margin onshore oil business.

“The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities to PXP’s existing domestic oil resource position,” he said.

The Eagle Ford oil shale acquisition is expected to close during the fourth quarter of 2010.