Lonestar New Transactions In The Eagle Ford ShaleSource: www.gulfoilandgas.com 4/30/2015, Location: North America
Lonestar Resources, Ltd. has reached definitive agreements to acquire leasehold associated with approximately 6,122 gross/ 4,047 net mineral acres in La Salle County, Texas.
Lonestarís independent engineering consultants estimates that Proved net reserves associated with these properties are 2.7 million barrels of liquids and 11.0 billion cubic feet of natural gas, or 4.5 million barrels of oil equivalent (MMBOE).
More importantly, Lonestarís third party engineering consultants estimate that Proved and Probable net reserves associated with the purchase are 6.4 million barrels of liquids and 26.3 billion cubic feet of natural gas, or 10.8 MMBOE.
The addition of this leasehold adds 32 gross /20 net horizontal Eagle Ford Shale drilling locations to Lonestarís drilling inventory.
At year ?end 2014, Lonestar held interests in 143 engineered Eagle Ford Shale drilling locations. This acreage is in two blocks and is in different parts of La Salle County,Texas: Greater Burns Ranch ? Lonestar has added 1,720 gross/1,225 net acres, in the Greater Burns Ranch area of northern La Salle County. This acquisition represents the third bolt?on deal closed since Lonestar established A foot print on the Burns Ranch when it acquired interests From Clayton Williams Energy, Inc. in March, 2014.
Lonestar expended $2.1 million to acquire all of the working interests it did not previously own in 960 gross/480 net acres, which holds 9gross/4 net Eagle Ford drilling locations with lateral lengths of 8,000 feet, and acquired interests in 760 gross/745 net acres in offsetting acreage which may hold as many as 4 additional Eagle Ford drilling locations. The purchase also adds net production of 33 barrels of oil equivalent per day (BOEPD) from 5 Austin Chalk wells, which hold all of the leasehold by production.
Lonestarís independent engineering consultants estimate that Proved net reserves associated with the purchase are 0.5 million barrels of liquids and 0.6 billion cubic feet of natural gas, or 0.6 million barrels of oil equivalent (MMBOE).
Lonestarís independent engineering consultant estimates that Proved and Probable net reserves associated with the purchase are 1.3 million barrels of liquids and 1.6 billion cubic feet of natural gas, or 1.6 MMBOE ďHorned FrogĒ ? Lonestar has executed a farm ? in agreement via which we Will acquire working interest in 4,402 gross/2,822 net acres in west central La Salle County.This acreage, which is in a contiguous block, affords Lonestarthe potential to drill a minimum of 19gross/12 net horizontal wells with lateral lengths of approximately 8,000 feet.
The agreement calls for Lonestar to drill two wells in 2015 to hold this leasehold. Lonestarís independent engineering consultant estimates that Proved net Reserves associated with the farm ? in are 2.1 million barrels of liquids and 10.4 billion cubic feet of natural gas, or 3.9 MMBOE.
Lonestar independent engineering consultant estimates that Proved and Probable net reserves associated with the farm?in are 5.1 million barrels of liquids and 24.7 billion cubic feet of natural gas, or 9.2 MMBOE. Additional reserves upside lies in the 1,580 net unleased net mineral acres on The block. Lonestar believes that it is in an excellent position to acquire these working interests associated with this tract, which would increase these reserves estimates by approximately 50%.
Frank D. Bracken, III, Lonestarís Managing Director and Chief Executive Officer commented, ďThese transactions reflect the successful execution of our strategy in the current oil price environment. Lonestar is focused on adding leasehold and reserves in the Eagle Ford Shale play, but doing so principally with the drill bit in order to conserve its liquidity.
Lonestarís flexible capital program has allowed it defer wells that were part of Our initial 2015 budget in favor of 5 wells related to its farm?in agreementson Its South Gonzales project and now at Horned Frog, thereby adding significant New leasehold and reserves with no incremental capital outlay.Ē
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