Lonestar Resources acquired 15,232 gross (13,156 net) Eagle Ford acres for $71.3 million in late February 2014. With the acquisition, the company now holds 23,079 net acres in the Eagle Ford Shale.
The acreage assets included in the deal had a net production of 664 boe/d at the end of 2013, and are located in LaSalle, Frio, Wilson, Brazos and Robertson Counties.
There are many deals like this one taking place in the Eagle Ford. In 2013, approximately $9 billion was spent on acreage deals in the play.
Read more: Eagle Ford Deal Value Leads the U.S. in 2013
Lonestar's Drilling Inventory
Almost all of the acreage will be operated by Lonestar, which will increase the company's Eagle Ford Shale drilling inventory to seven years. Prior to this deal, Lonestar's drilling inventory was five years.
“In keeping with [our] core strategy, roughly 90% of the Eagle Ford locations are on leasehold which is operated by Lonestar. This feature, in combination with the fact that roughly two-thirds of the 13,156 net acres being acquired are already held by production (HBP), means that Lonestar will be able to largely dictate the pace of capital spending, which has always been critical to our ability to grow without stretching our available liquidity.”
Lonestar's Eagle Ford Reserves
Lonestar Resource's proved reserves will increase by 7.4 million BOE and the company's proved PV-10* will increase by $138.3 million to $566.4 million. The deal increases Lonestar’s overall reserves (proved and probable) to 36 million BOE.
PV10 - Present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual discount rate of 10%. This nomenclature is most commonly used in the energy industry, and is used to estimate the present value of a company's proved oil and gas reserves.
Read more at lonestarresourcesinc.com
