Eagleford Energy Acquires Additional Eagle Ford Shale Acreage

TORONTO, Aug. 23 /CNW/ - Eagleford Energy Inc. (OTCBB "EFRDF") ("Eagleford Energy" or the "Company"), announces that it has entered into an agreement to acquire Dyami Energy LLC a Texas limited liability corporation ("Dyami Energy") at a transaction value of US$4.1 million (the "Transaction"). As consideration for the Transaction Eagleford Energy agreed to issue US$3,140,000 of units of the Company at US$0.90 per unit in exchange for 100% of the issued and outstanding membership interests of Dyami Energy and assume US$960,000 of Dyami Energy debt by way of a secured promissory note (the Note). Each unit is to be comprised of one common share and one-half a purchase warrant (the "Units"). Each full warrant is exercisable into one additional common share at US$1.00 per share for a period of four years from the date of issuance (the "Units"). The number of Units to be issued is subject to certain working capital adjustments at closing. The Note bears interest at 6% per annum, is secured by the leases (as defined below) and is payable on December 31, 2011 or upon the Company closing a financing or series of financings in excess of US$4,500,000.

The assets of Dyami Energy include a 75% working interest (56.25% net revenue interest after royalties) before payout which reduces to a 61.50% working interest (46.125% net revenue interest after royalties) after payout of $12,500,000 of production in a lease comprising approximately 2,629 gross acres of land in Zavala County, Texas (the "Matthews Lease") and working interests ranging from 90% to 97% (net revenue interests after royalties ranging from 67.5% to 72.75%) in a lease comprising approximately 2,637 gross acres of land in Zavala County, Texas (the "Murphy Lease") (collectively "the Leases"). Eagleford Energy previously announced the acquisition of a 10% working interest (7.5% net revenue interest after royalties) before pay out which reduces to a 7.5% working interest (5.625% net revenue interest after royalties) after payout of $15,000,000 of production in the Matthews Lease.

The Leases are located in Zavala County which is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. Eric Johnson, VP Operations at Dyami Energy stated, "We believe that both the Matthews Lease and the Murphy Lease are highly prospective for hydrocarbons in the Eagle Ford shale formation as well as other formations. The Matthews Lease is surrounded by Petrohawk's (Petrohawk Energy Corporation NYSE: HK) Red Hawk block where Petrohawk has recently announced initial production of 355 barrels a day of oil from a horizontal well drilled on its Mustang Ranch "C" No.1H location. The Murphy lease is approximately 11 miles northeast of Chesapeake's (Chesapeake Energy Corporation NYSE: CHK) recently announced initial production of 930 barrels a day from its Traylor North 1-H well." Johnson further stated, "We have logs that show 380 feet of Upper and Lower Eagle Ford shale on our Matthews Lease of which approximately 160 feet is the organically richer lower Eagle Ford. Also, previous engineering reports indicate that the San Miguel formation contains 70 million barrels of heavy oil in the San Miguel D Sands and another 80 million barrels of heavy oil in the San Miguel A,B,C, Sands all within the bounds of our Matthews Lease."

Prior to closing the acquisition, Dyami Energy must satisfy Eagleford Energy that Dyami Energy has either commenced or is prepared to commence operations to drill a test well on the Matthews Lease in compliance with its obligations under the Matthews Lease.

The Transaction is scheduled to be closed by August 31, 2010 subject to satisfaction of all conditions precedent.

At present there are approximately 26.3 million shares issued and outstanding in the capital of the Company prior to the issuance of any shares associated with the closing of the Transaction.

    
    About Eagleford Energy Inc.
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Eagleford Energy Inc. is a growth orientated oil and gas company with a focus on growing hydrocarbon reserves, cash flow, and net asset value per share through exploration and production of mineral properties in South Texas. The Company is actively pursuing leases and drilling opportunities in Texas and throughout the region with a primary objective of obtaining high-demand Eagle Ford Shale acreage for follow up exploration and production.

Certain information regarding the Company in this news release may constitute forward-looking statements under applicable securities laws. The forward-looking information includes, without limitation, projections or estimates made by us and our management in connection with our business operations. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to the Company and the industry in which it operates as well as certain assumptions as specifically outlined in the release above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of the Company's management at the time the information is released and the Company disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities laws.

For further information: Eagleford Energy Inc., Investor Relations, Telephone: [phone], Facsimile: 416 364-8244