ECCO Energy Signs Letter of Intent With Samurai Corp to Acquire 40 Producing Wells in Ohioadmin
On December 31, 2008, ECCO Energy Corp. signed a letter of intent to purchase properties from Samurai Corp, Inc., including the working interests in the properties previously owned by Lake Fork Resources, LLC in Ohio and the M-J Oil Company, also in Ohio. These acquisitions include 40 producing wells and multiple development drilling opportunities, as well as opportunities to increase production from currently producing wells. These wells are located in eleven counties in eastern Ohio. ECCO will operate all of the wells. There are multiple productive horizons, including the Clinton Sandstone, Ohio Shale, Oriskany Sandstone, Berea Sandstone and Marcellus Shale. Current net production is approximately 240 mcf and 23 barrels of oil per day.
ECCO plans to complete the transaction by the end of February 2009, and the effective date of the transaction will be December 31, 2008.
Sam Skipper, ECCO’s President, said, “This is a major acquisition for our company. It provides us with additional producing property with long life reserves. ECCO’s management team has identified 18 existing wells containing Marcellus Shale sands, and once recompleted, we feel the properties will significantly enhance current production with additional oil and gas volume.”