Escondido Resources is a private independent exploration, production and development company focused on developing unconventional reserves in South Texas. Escondido's senior management team has been working in the South Texas region since the late 1980s, and the company's strategy is to grow through low-risk exploitation of its existing properties and acreage. Currently, Escondido is developing its 40,000 gross-acreage position in Webb and La Salle counties in the prolific Eagle Ford Shale along with the Escondido and Olmos formations utilizing horizontal drilling technologies. These new technologies dramatically enhance the company's ability to economically increase production and reserves while minimizing the environmental footprint of its operations.
Our predecessor company, Escondido Resources, LP, was founded in late 2004. Over the ensuing three years, the company drilled 163 vertical wells targeting the Escondido and Olmos formations with a 95% success rate. In October 2007, Escondido Resources LP sold its assets to Swift Energy for $249.5 million.
Escondido Resources II was formed in November 2007 to continue to exploit the shallow Escondido and Olmos formations it had successfully developed in Escondido I; however, the discovery of the Eagle Ford Shale in 2008 added new focus to the company's existing acreage position and allowed for a new, prolific formation to be targeted in the company's drilling and completion activities. Escondido drilled and completed its first horizontal Eagle Ford Shale well in December 2009, a 5,600-foot lateral well with 19 fracture stages, and we have now drilled over 150 horizontal wells in Webb, La Salle and McMullen counties of South Texas. Approximately 40% of these horizontal wells have been Eagle Ford Shale wells, and 60% have been Escondido/Olmos completions, with lateral lengths now averaging approximately 10,000 feet. The company's current focus is on developing its proven Eagle Ford Shale acreage within the company's operating cash flow.