Lonestar Resources is hitting a stride for growth after its recent Eagle Ford acquisitions.
Lonestar reported its second quarter financial and operational results earlier this month where company executives said they expect to accelerate drilling activity on the 30,210 acres they purchased in June.
During an earnings call, the CEO shared about the company's '10 and 100' plan to maximize the new assets. The plan would generate production in excess of 10,000 BOE a day and EBITDAX in excess of $100 million in 2018. Based on current trends, if the company continues to drill the same kind of wells on its core properties, they will be successful.
Second Quarter Highlights
- 7% sequential increase in net oil and gas production
- Production volumes consisted of 3,564 barrels of oil per day and 6,402 Mcf of natural gas per day
- Placed 1.0 gross / 0.5 net wells onstream
- Increased operating cost structure
In June, Lonestar closed on the purchase of 30,210 gross acres in the Eagle Ford Shale region of south Texas. The $116.6 million deal included properties in Karnes, Gonzales, DeWitt, Lavaca and Fayette Counties.
After this new purchase, Lonestar has 72,244 gross acres located in the Eagle Ford. These assets will be foundati0olnal to the company's growth over the next four years.