Lucas Energy has acquired 3,630 net acres in the Permian Basin.
The Houston-based oil and gas company has formed an area of mutual interest partnership with a private holding company. The company will pay $1.43 million for a 90 percent working interest in the acreage, according to a company statement.
The holdings are in the San Andres formation, which spans southeastern New Mexico and western Texas and has become a popular horizontal drilling area.
Lucas Energy CEO Anthony C. Schnur, in a statement, called the purchase a “potentially transformational transaction.”
“With this initial leasehold position, we have established our entry into the prolific Permian Basin,” Schnur said. “We believe the similarities of the San Andres to our existing Hunton (Oklahoma) properties play well into our technical strengths in drilling carbonates, as well as water and other infrastructure management capabilities.”