As per the MOU terms, the financial team will provide a financial assistance of $16.5m to carry out phase one of the three part drilling program in the recently acquired 85% working interest in 3,684 acres in Frio County, Texas.
Eagle Ford Oil and Gas chief executive Paul Williams said the MOU is from a known international finance team that funds development programs.
"We are currently in the process of providing lease information and technical studies. We hope to have that done in the near future allowing us to move towards financing the project and begin drilling operations," Williams added.
The company will use the funds to spud through the Austin Chalk, Eagle Ford Shale and Buda Limestone formations on the leasehold and also provide working capital to cover certain general and administrative costs.
