Oil and gas company Eagleford Energy has started drilling of the initial well, Mathews/Dyami 1-H, on the Matthews lease comprising 2,629 acres of land in Zavala County, Texas.

The well is being drilled vertically and the company intends to continue through the Eagle Ford shale and log the San Miguel sands, the Austin Chalk, and the Eagle Ford before extending approximately 4,000ft horizontally across the Eagle Ford shale formation.

Eagleford Energy holds 85% working interest (69% after payout) in the Matthews lease.

Dyami Energy VP of operations Eric Johnson said that after coring and logging, the company intends to extend horizontally through the Eagle Ford shale and install a multi stage Frac Point System from Baker Hughes.

"It is estimated that this frac system may significantly reduce frac costs, thereby enhancing the economic returns anticipated from the Eagle Ford shale," Johnson said.

The Matthews lease is situated adjacent to the Redhawk land block under development by Petrohawk Energy.

Dyami Energy is a Texas-based operating subsidiary of Eagleford Energy.