Lucas Energy and Lonestar Resources strike a deal to develop joint assets in the Eagle Ford Shale Play.
Lucas Energy announced this week that its wholly-owned subsidiary, CATI Operating, LLC will borrow $1 million to fund drilling, completion and maintenance projects in the Eagle Ford Shale. The company will enter into a joint operating agreement with Lonestar Resources that will cover over 1,450 gross acres. Lucas will have a 8% -14% working interest in the units.
Details of the deal include:
- 80% of all cash flow generated will go to satisfy notes with the lender
- 20% to be used by CATI for lease and other operating expenses and capital expenditures
- Lucas will have a 8% -14% working interest in the units
Throughout the second quarter, Lonestar focused its technical and capital resources on the Eagle Ford Shale and boasts an increase of 23% for oil and gas volumes compared over the first quarter of 2015. The company plans to focus the rest of 2016 on its Eagle Ford assets in Dimmit, LaSalle and Gonzales Counties.