About Eagleford
On August 31, 2010, Eagleford Energy acquired Dyami Energy LLC a Texas limited liability
corporation (“Dyami Energy”), at a transaction value of US$4.1 million (the “Transaction”).
The principle assets of Dyami Energy are two mineral leases (“Leases”), the Matthews
Lease and the Murphy Lease both prospective for oil and gas production in what is
known as the “oil window” of the Eagleford Shale (“EFS”) formation in Zavala County,
Texas.
Giving effect to the Dyami Acquisition, the Company's Zavala County, Texas mineral
property interests include a 85% working interest before payout (69% working interest
after payout) in the Matthews Lease comprising approximately 2,629 gross acres of
land and working interests ranging from 90% to 97% in the Murphy Lease comprising
approximately 2,637 gross acres (collectively "the Leases").
The Leases are located in Zavala County, which is part of the Maverick Basin of
Southwest Texas, and downdip from the United States Geological Studies north boundary
of the Smackover-Austin-Eagle Ford total petroleum system.