By mid-afternoon the company shares were up 20% to $0.006 under the third-highest daily volumes in the last 12 months.
The acquisition is part of a 50/50 joint venture with an undisclosed Texas-based private oil and gas company.
Weighing up the financial viability
Grand Gulf has spent circa US$550,000 on leasing costs, and management estimates that the joint venture will need to outlay drilling costs of circa US$4.5 million per well.
Depending on the number of wells that are drilled the company expects to farm down its interest in the project to a manageable economic level.
From a risk reward perspective, management noted a number of recent successes in that region.
Recent results continue to outperform previous Eagle Ford type production with more than 80% of current wells featuring premiums to historic estimated ultimate recoveries (EUR).
Wildhorse has new entrants pumped
In the September quarter 2017, US-based Wildhorse Resource Development Corp (NYSE:WRD) brought online 27 Eagle Ford and one Austin Chalk horizontal wells.
Of the 27 Eagle Ford completions, the Jurica/Doughtie wells, delivered strong flows and these are within circa 15 kilometres of the joint venture acreage.
Such as been the excess of Wildhorse that its shares have more than doubled since August, implying a market capitalisation of nearly US$2 billion.