The purpose of the proposed JV is the development of the Eagleford Shale properties owned by Lucas Energy in Gonzales county, Texas. The JV partner will acquire an 85% working interest in the deep rights, including the Eagleford Shale formation.
Lucas Energy will retain a 15% working interest. The JV does not include any producing wells or current production sale at closing. The JV is estimated to provide Lucas Energy with $1 per share in cash and other considerations.
William Sawyer, president and CEO of Lucas Energy, said: “This is a major move toward the development of our Eagleford Shale properties. It will also provide us cash for future activities, including paying off our bank debt.”
