February 4, 2013 -
AUSTIN, TEXAS, Feb. 4, 2013 ― Venado Oil & Gas, LLC, a privately held energy company, today announced the acquisition of its non-operating partner’s 50 percent working interest in the Horseshoe Project in Lee County, Texas.
Venado now controls a contiguous 124,000 gross operated acre position in its Horseshoe Project. This leasehold represents a multi-play, liquids-rich opportunity offsetting the 1.3 billion barrel Giddings Austin Chalk oil field. During the first quarter, Venado plans to further delineate the Eagle Ford as well as test the Buda and Pearsall formations. Early indications from the company’s and offset operators’ Eagle Ford wells suggest estimated ultimate recoveries in excess of 300 MBOE per well. Venado expects a greater than 50 percent rate of return at a $6 million development well cost.
Scott Garrick, chief executive officer of Venado Oil & Gas, commented, "Our first two wells confirm a very organically rich, high-carbonate, low-clay, brittle Eagle Ford formation. We are pleased to have closed this acquisition and plan to drill a series of long extended laterals in the Eagle Ford formation with 20 plus frac stages. This transaction is a great opportunity to increase our leasehold and better align the company with a private equity strategy."