Eureka (EGH) notes last night’s announcement by Marathon Oil Corporation that it has reached an agreement to acquire Hillcorp Resources Holdings, LP assets in the Eagle Ford Shale trend in Southern Texas for USD 3.5 billion. The transaction is conditional on customary terms and conditions and relevant statutory approvals. The principal asset of the Hilcorp Partnership is a 141,000 net acres in the Eagle Ford shale which include interests in the Sugarloaf Area of Mutual Interest. Eureka holds over 6,200 net acres in the Eagle Ford of which 1,500 net acres are in the Sugarloaf AMI.
Commenting on the transaction, Eureka Chairman Ian McCubbing said: “This $3.5 billion transaction, the largest to date in the Eagle Ford shale, highlights the accelerating interest in and demand for quality Eagle Ford Shale assets. The Hilcorp Partnership and its associates have done an outstanding job in developing the Sugarloaf AMI since their involvement began last year. We now welcome the involvement of Marathon and look forward to working with them as a joint venture partner in the continued development of the Sugarloaf AMI. ”
Marathon is the fourth largest U.S.-based integrated international energy company and has announced that with completion of this and other transactions due to close by the end of 2011 it expects to more than double its Eagle Ford acreage position to 285,000 net acres.
Eureka is an Oil & Gas exploration, development and production company listed on the Australian Securities Exchange and focused on the development of its onshore Eagle Ford Shale interests in Southern Texas, USA. Eureka participates in the Sugarloaf, Pan de Azucar and Brioche projects.