Reef Oil & Gas Drilling and Income Fund, L.P. Lands in the Eagle Ford Shale with New Acquisitions to Support Public Fund

    RICHARDSON, TX, October 27, 2014 /24-7PressRelease/ -- Reef Oil & Gas Drilling and Income Fund, L.P. purchased oil and gas working interests from Arbol Resources, Inc. The initial purchase price of $11.25 million includes interests in 67 producing oil and gas wells, and an estimated 108 drilling locations where wells may be drilled in the future. All of the estimated drilling locations are located in the Eagle Ford Shale, and Reef expects drilling activities on the properties will continue for approximately seven years.

The Partnership's interests are located on the border of Frio and LaSalle counties in Texas, southwest of San Antonio. The acreage block is operated by Cheyenne Petroleum Co. and includes 18 proved undeveloped wells scheduled to be drilled and or completed by year's end. The acquisition will add approximately 120 barrels of oil equivalent per day to the Partnership's production, with estimated proved reserves of 701,000 barrels of oil equivalent, and additional probable and possible reserves from undeveloped locations of an estimated 510,463 barrels of oil equivalent.

"Our Eagle Ford acquisition adds depth to the fund and we couldn't be happier that it is in arguably one of the most attractive shale plays in the world right now," President and CEO Mike Mauceli said. "We can get production moved quickly to the Gulf Coast because of the mature infrastructure in the area.

The operator has implemented an improved stimulation technique by increasing proppant density during the extraction process, which is improving overall production. Additionally, the operator has defined a drilling schedule through March 2015.

"We're excited to add this quality package in the Eagle Ford Shale to the Partnership's investment base," CFO Dan Sibley said. "The addition of this project with our acquisitions in the Bakken-Three Forks area of North Dakota not only adds diversification over a large number of wells, but also enhances geographical divergence to the fund.

The EIA reported that combined crude oil production volumes from Texas and North Dakota reached 4.0 million barrels per day. From April 2010 to April 2014, crude oil production volumes in North Dakota and Texas grew at average annual rates of 37% and 28%, respectively, versus 2% average annual growth in the rest of the United States. During this period, North Dakota and Texas's combined share of total U.S. crude oil production rose from 26% to 48%.

For more information on Reef Oil and Gas Companies, please visit www.reefogc.com.

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