US-based Lucas Energy has completed the acquisition of working interests in producing properties and undeveloped acreage in Texas and Oklahoma from Segundo Resources and other sellers.
The acquisition was announced in December last year and also included varied interests in two contiguous acreage blocks in the mid-continent region of the US.
At present, the assets are producing more than 1,000 net barrels of oil equivalent per day (boepd), of which 53% are liquids and being produced primarily from the Hunton formation from 114 wells.
Lucas has also identified additional offset development drilling opportunities for at least 40 additional wells and is planning specific development activities.
In consideration for the acquisition of these assets, Lucas assumed about $30.6m of bank debt.
The company also signed a $40m loan agreement with the International Bank of Commerce (IBC) and the majority of the funds were used for the debt assumption.
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By GlobalDataLucas Energy CEO Anthony Schnur said: "We now have a foundation of producing and undeveloped assets to grow the company on.
“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.”
With the closing of the Segundo transaction, the company said it will expand into proven reservoirs outside of the Eagle Ford, while improving its financial stability.
