Until 2007, Eagle was a typical oil and gas exploration company that developed exploration ideas and identified partners on a project-by-project basis then acquired and developed properties. During this time Eagle built a very successful organization which became very attractive to outside institutional capital. In April 2007, Eagle entered into a transaction with a large exploration and production focused private equity fund. The fund and Eagle formed a company, for the purpose of the fund investing in several of Eagle’s exploration opportunities. From mid-2007 through 2011 the Exploration Company invested in a number of prospects and drilled over 80 wells with gross gas production of over 50,000 MCFD and gross oil production of over 1,400 BOPD. The Exploration Company invested over $100 million of total capital and generated over $22 million of revenue that was reinvested in exploration projects. The largest of the prospects was the Wolfbone play in West Texas which was sold by Eagle and its Partners to Comstock Resources, Inc. in December 2011.
Through the years, Eagle has developed a strategy of investing early in emerging plays and acquiring leases as early as possible with the idea of accumulating as much acreage as possible at relatively low leasehold costs. After acquiring the leasehold, Eagle then begins the process of forming drilling units and drilling the necessary early stage exploration/development test wells. Eagle has developed an operational team that has been very successful in drilling the initial wells, de-risking the play and building the infrastructure necessary to successfully produce and market oil and gas. Eagle’s team is well experienced in drilling and completion. Our team makes enormous efforts to adjust each well to the play as technology and well information is applied to actual drilling results, all while conserving capital to achieve the highest return on investment as possible.