By Katherine Blunt
Lucas Energy, a Houston oil and gas company, has finalized its acquisition of properties in Oklahoma and Texas, marking an expansion of operations concentrated in the Eagle Ford and Austin Chalk formations.
Lucas Energy purchased 114 producing wells that yield approximately 1,000 net barrels of oil equivalent daily, more than half of which are liquids, the company said. It paid nearly $5 million in cash and borrowed about $31 million to acquire the properties, centered on the Hunton formation in central Oklahoma.
“Not only are we diversifying our production profile to include natural gas liquids, but the conventional nature of the long-lived Hunton reserves are lower-risk and lower-cost to develop than our Eagle Ford assets,” CEO Anthony Schnur said in a statement.
The company said it has identified opportunities to develop at least 40 additional wells. According to securities filings, it plans to drill six wells initially.
It recently reported a loss of $1.4 million for the quarter ending in June, compared to a $1 million net loss during the same period last fiscal year.