Houston-based Lucas Energy announced in March 2014 that it will farm out ~400 Eagle Ford acres to a private independent operator in exchange for $1-million. The acreage is located on the company’s Karnes County leasehold.
Lucas held back on Eagle Ford development in 2013 as it went through a restructuring process. In 2014, company officials indicate the focus has shifted to development.
Lucas Terms of Eagle Ford Farm Out Agreement
The operator (farmee) will drill an initial horizontal well in exchange for a 75% working interest. Lucas (farmor) will retain a 25-percent carried working interest, under which the operator will bear 100-percent of the drilling costs, estimated at $2-million. In the remaining acreage, Lucas will retain a 75-percent working interest and the operator will have a 25-percent working interest.
Read more at LucasEnergy.com
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