Loreto Resources Corp. reported that it has entered into an agreement under which the company can earn a working interest in various oil and gas leases in the Maverick Basin in South Texas.
Loreto Resources signed a non-binding letter of intent with Eagleford Energy Inc., which holds a working interest in the Matthews and Murphy leases located in Zavala County, Texas. The agreement allows the company to earn up to a 50% working interest in the leasehold.
Loreto Resources is required to spend between $2 million and $2.5 million to support the development program underway on the properties. Under this phase of the agreement, the company would earn a 20% to 25% share of the working interests held by Eagleford Energy Inc.
Loreto Resources is also required under the agreement to provide convertible note financing of $250,000 to Eagleford Energy Inc. In addition, the company must make an equalization payment of $1 million, consisting of $300,000 and the issuance of common stock with a value of $700,000.
Loreto Resources said that the two leases comprise 5,266 gross acres and are prospective for the Eagle Ford Shale, Buda Lime and Austin Chalk formations. The development program is currently underway and involves the drilling and completion of a number of wells on the property.
For more information on the company, go to www.eagleford.com
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