Lonestar Resources is making major inroads into the Eagle Ford with new acquisitions.
Lonestar announced this week that is will purchase 30,210 gross acres in the Eagle Ford Shale region of south Texas. The $116.6 million deal will include properties in Karnes, F+Gonzales DeWitt, Lavaca and Fayette Counties.
The acquisition will make a huge impact on Lonestar's value by increasing oil and gas production by 39%. The purchase increases the company's lease holdings by 59% and its drilling locations by 70%.
Through the rest of 2017, Lonestar plans to spend $62 to $72 million on drilling and completion operations. The company already has an eye on a drilling plan 2018 that will include 18 gross / 16 net wells, costing of $85 to $95 million.
During a first quarter earnings call, Lonestar executives reported a 15% production growth during the three months ending March 31, 2017. The company also reduced Lease Operating and Gas Gathering Costs ("LOE") by 15% during the quarter, compared to $3.5 million over Q4 2016. Executives expect production to grow at an accelerated rate through the rest of 2017.