Lucas Energy Re-Activates Eagle Ford Assets

  Lucas Re-activates Wells in the Eagle Ford

Lucas Re-activates Wells in the Eagle Ford

Lucas Energy re-energizes their activity in the Eagle Ford.

Related: Lucas Energy Joins Lonestar for Eagle Ford Development

This morning, executives of Lucas Energy announced they recently completed two wells in Karnes County in addition to re-activating their Griffin 1H Austin Chalk well. The first tests on the Griffin 1H is showing production of 55 boe/d after having produced 5 Boe/d prior to shut-in.

In south Gonzales County, Lucas has participated in the Cyclone #9H well that tested 598 barrels of oil equivalent per day (Boe/d) and a 30-day initial production rate of 486 Boe/d. The Cyclone #10H tested 631 Boe/d and a 30-day initial production rate of 521 Boe/d. Originally estimated to cost an average of $5.2 million, these wells have been drilled and completed at an average cost of $4.7 million. Both are producing approximately 90% crude oil from a processed three-stream basis on a 18/64″ choke. Lucas owns an 8% working interest in these two wells.

In August, Lucas Energy announced 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.

As we ramp up production on our legacy and newly-acquired assets, the Company continues to aggressively pursue acquisition opportunities with both producing and nonproducing reserves.
— Anthony C. Schnur, the Chief Executive Officer of Lucas Energy

Second quarter highlights for Lucas’ Eagle Ford assets include:

  • Placed two new Eagle Ford shale wells on stream during May of the quarter
  • Crude oil production rose 17% sequentially in the second quarter as Lonestar’s 2016 completions have all been in the crude oil window.
  • Net loss of $12.8 million for 2Q16 versus a net loss of $8.4 million in 2Q15
  • Adjusted EBITDAX was $16.0 million compared to $22.0 million for 2Q15