Yesterday, Eagle Ford Oil & Gas Corp. announced that they acquired Sandstone Energy, LLC, in exchange for 17,857,113 shares of Common Stock of the Company. Following the acquisition, the shares issued to the former owners of Sandstone constitute 82 percent of the Company’s common stock. Sandstone Energy, LLC was privately held until the acquisition.
In connection with this acquisition, Paul Williams became the Chief Executive Officer, and Ralph “Sandy” Cunningham Jr. became the President and Chief Operating Officer, of Eagle Ford Oil & Gas Corp. In addition, Mr. Williams and Tom Lipar were added to the Board of Directors of the Company. Richard Adams, the Company’s former President, will remain with the Company as Chief Financial Officer and as a Director.
Furthermore, Eagle Ford Oil & Gas Corp. announced that before the acquisition, they had reached an agreement with the Preferred D shareholders to convert their Preferred D stock to common stock and agreed to issue warrants for the future purchase of common stock. The conversion eliminated the last outstanding preferred stock of Eagle Ford Oil & Gas Corp.
Sandstone Energy, LLC is an oil and gas exploration and production company; they have their headquarters in the Houston metropolitan area. They specialized in acquiring, exploring and developing oil and gas properties along the Gulf Coast of Texas and Louisiana.
At present, Sandstone Energy has a 38.75 percent working interest in approximately 2,400-plus acres, in Lee County, Texas. They currently have two wells producing oil, the Vick #2 and the Alexander #1, on this property. A third party operates these. The Alexander #1 well is undergoing sidetracking with a 2,500 ft. lateral. Both wells are in the Austin Chalk.
Eagle Ford Oil & Gas Corp. anticipates the development potential of 20-plus wells on this property. They believe that the property has production potential in several zones. This includes the Austin Chalk, Buda, Edwards and Eagle Ford. The Company also plans to acquire additional leases in the Texas-Louisiana Gulf Coast region.
Mr. Paul Williams, the new President of Eagle Ford Oil & Gas Corp. said, “The acquisition of Sandstone and the subsequent ability to raise capital will provide Eagle Ford the ability to grow our company and achieve sustainable profitability. The properties from Sandstone, as well as the prospects, will provide our company with much of the needed cash flow to achieve our goals.”
Mr. Williams further said, “This acquisition provides a solid foundation to grow the Company and build shareholder value through both drilling and additional acquisitions.”
Headquartered in Houston, Texas, Eagle Ford Oil & Gas Corp. is an independent oil and gas company. They actively engage in oil and gas development, exploration and production with properties and operational focus in the Eagle Ford Shale Region of Texas. The Company’s strategy is to grow their asset base through investing in oil and gas drilling and production in the Eagle Ford Shale region of Texas.
For more information visit: www.efogc.com