On August 26th, 2014, Lucas Energy (NYSEMKT:LEI) announced a binding agreement for drilling several Eagleford Shale wells on 400 acres in Karnes County, Texas. Previously, Lucas had announced a deal pertaining to this same acreage, however, with the company absolutely silent on the previous agreement in various filings since, it was pretty obvious that agreement had fallen through.
The new agreement gives Lucas an upfront payment of $444,000 in exchange for a 50% working interest (WI) in 400 acres. This figures out to around $2,200 per acre, which is extremely low for Eagleford acreage. LEI and the operating partner, Oak Valley Resources, will go heads up 50% each on every well drilled on the acreage in question. This...
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