The acquired acreage in the Pearsall oil field has produced more than 200 million barrels of oil equivalent (boe) and has a high degree of Austin Chalk, Eagle Ford Shale and Buda Lime black oil reservoirs.

The company has also noted that the operators in the surrounding acreage including Cabot Oil & Gas, Goodrich Petroleum and others have an apparent 100% completion success rate in the three formations.

Eagle Ford Oil and Gas CEO Paul Williams said the acquisition is the foundation for future growth that the company has been looking for since it completed the merger between Sandstone and Eagle Ford last year.

"The fact that the surrounding fields have a 100% success rate for wells in the three different formations means we have several years of developmental drilling with little geological risk," Williams added.

Substantial legacy well data within and adjacent to the acreage indicates the presence of effective fracture systems in all three reservoirs.

Eagle Ford has rights to all formations including the deeper Pearsall Shale, a condensate-rich gas reservoir.

The company can drill over 20 wells for each reservoir based on a nominal 160 acre well spacing.

The production rate of surrounding new fields from the three formations is expected to be between 350,000 and 500,000 barrels of oil equivalent per well while the initial production rates s between 400 boepd to over 1,000 boepd.

Eagle Ford Oil & Gas engages in exploration and development of oil and gas production properties.