NOTES PAYABLE

6 Months Ended

Jun. 30, 2011

6. NOTES PAYABLE

Notes Payable – Related Parties

	June 30, 2011		December 31, 2010

Promissory note to Rick Bobigian - interest at 8% due July 1, 2010; unsecured. (5)	$	25,000	$	-

Promissory note to Rick Adams - interest at 6% due February 10, 2011; unsecured. (5)		3,017		-

Promissory note to Rick Adams - interest at 6% due March 15, 2011; unsecured. (5)		7,060		-

Promissory note to TDLOG – interest at 8.00% due December 31, 2011; unsecured (7)		817,500		637,500

Promissory note to Pierre Vorster – interest at 12.50% due November 18, 2011; unsecured (8)		106,000		142,000

Less current portion of related party debt		958,577		779,500

Total related party debt – long term	$	-	$	-

On June 20, 2011, the Company acquired $35,077 of related party notes as a result of the Acquisition (see Note 4).

Notes Payable – Non-Related Parties

	June 30, 2011		December 31, 2010

Promissory note - interest of 7% due August 17, 2009; not secured (1)	$	12,000	$	-

Promissory note - interest of 7% due August 17, 2009; not secured (1) (6)		12,000		-

Promissory note - interest of 7% due August 17, 2009; not secured. (1) (6)		12,000		-

Promissory note - interest of 7% due August 17, 2009; not secured (1) (6)		12,000		-

Promissory note - interest of 7% due September 10, 2009; not secured (1) (6)		6,000		-

Promissory note - interest of 7% due September 14, 2009; not secured (1) (6)		12,000		-

Promissory note - interest of 7% due September 10, 2009; not secured (1) (6)		6,000		-

Promissory note - interest of 12% due June 30, 2009; (3)		328,578		-

Pipeline mortgage - interest of 8% due September 30, 2009; secured by pipeline (4)		1,000,000		-

Promissory note - interest of 7% due October 19, 2009; not secured. (1)		12,000		-

Promissory note - interest of 7% due September 10, 2009; not secured (1)		12,000		-

Promissory notes - interest of 6% due April 1, 2011 (2)		142,000		-

Promissory notes - interest of 5% due October 15, 2010; not secured (2)		50,000		-

Promissory note - interest of 20% due January 1, 2011; not secured (2)		75,000		-

Promissory note – non-interest bearing, due on demand		20,500		23,000

Promissory note – non-interest bearing, due on demand		13,500		23,500

Promissory note – non-interest bearing, due on demand		1,000		3,500

Promissory note - interest of 5% due January 1, 2012; not secured.		227,131		-

Less current portion		1,953,709		50,000

Total long term portion of debt to non-related parties		-		-

Total debt to non-related parties	$	1,953,709	$	50,000

On June 20, 2011, the Company assumed $1,918,709 of non-related party notes as a result of the Acquisition (see Note 4).

(1)

In 2009, Eagle Ford borrowed $96,000 from three different parties for general corporate purposes. None of these notes have been repaid and are in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on these notes at the stated rate. In July 2011, two of these parties agreed to convert $60,000 of notes into 142,337 shares of Eagle Ford common stock at a price of $0.45 per share. See Item (6).

(2)

In 2010, Eagle Ford borrowed $267,000 from 4 different parties for drilling on the Wilson Field lease and for general corporate purposes. None of these notes have been repaid and are in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on these notes at the stated rate.

(3)	All principal and interest became due June 30, 2009. This note has not been repaid and is in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on this note at the stated rate.

(4)

The entire unpaid balance of principal and accrued interest was due on September 30, 2009. No payments have been made and this mortgage note is in default. There has been a judgment rendered against Eagle Ford in the amount of the mortgage (see Note 10). Eagle Ford is in discussions with the lender to restructure the mortgage. Eagle Ford is continuing to accrue interest on these notes at the stated rate.

(5)

Eagle Ford borrowed $35,077 from two related parties for general corporate purposes. All three notes are in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on these notes at the stated rate. In July 2011, Rick Adams agreed to waive interest and principal payment for this note, thus canceling it.

(6)	On July 13, 2011, Eagle Ford agreed with two note holders to convert $60,000 of debt and $8,322 of accrued interest into 142,337 shares of common stock at a price of $0.42 per share.

(7)	TDLOG, LLC is controlled by Thomas E. Lipar, Chairman of the Board of Eagle Ford.

(8)	Pierre Vorster is a former owner of Sandstone Energy, LLC. and owns 178,571 shares of Eagle Ford common stock.

The following are maturities on all debt and convertible notes for the next five years (including the debentures described in Note 7):

	Principal Amount

2011		3,205,155
2012		227,131
2013		-
2014		-
Thereafter		-

Total debt	$	3,432,286