A source with direct knowledge of the joint venture confirmed to Upstream that it had been signed, but declined to offer details of the contract.

Officially, both Mitsubishi and EOG representatives declined to comment on the deal, as EOG continued to decline to comment on its TMS position.

It is believed that EOG controls more than 120,000 acres in the play, primarily on its western edge in Vernon, Rapides and Avoyelles parishes, and that it continues to lease to the east into what has been considered the heart of the play, where Devon Energy and Encana have drilled wildcats.

Already, EOG has applied for its first two drilling units in the play, both in Avoyelles Parish.

The deal is one of the first joint ventures aimed solely at the TMS, a Cretaceous-aged formation that lies between 11,000 feet and 14,000 feet below the border of Mississippi and Louisiana."

http://www.upstreamonline.com/hardcopy/article1245128.ece

This could be the first move by Mitsubishi to acquire additional gas reserves that would supply Sempra's Cameron LNG Export Project.  It could also provide EOG with access to this market outlet.