Lucas Energy runs five workover rigs on its Eagle Ford Shale acreage

By Phaedra Friend Troy

Lucas Energy Inc. (NYSE: LEI) is currently running five workover rigs in its Eagle Ford Shale acreage.

In line with its business plan, Lucas is currently re-entering old, abandoned wells with three of the rigs. Additionally, the company is planning on logging and/or testing three Eagle Ford Shale wells in the coming month alone.

"The workover activities of Lucas Energy are the focus of our business plan to re-enter old wells and put them back on production,” said William A. Sawyer, president and CEO of Lucas Energy.

A Houston-based company, Lucas has been acquiring abandoned wells onshore Texas that were previously producing, but were plugged and abandoned because of low commodity prices in the early 1990s. In the last six years, Lucas has acquired 61 properties and more than 15,000 acres in Texas, resulting in more than 1.5 million barrels of proven oil reserves with 26 producing wells.

The company has been focusing on re-entering these wells, cleaning them up and re-starting production from them.

The company’s business plan is split into three phases. First, Lucas will re-enter seven shut-in or plugged and abandoned wells. Then, the company plans to clean out 19 old lateral wells and drill straight holes to test the Buda and Eagle Ford formations. Lastly, the company is planning on drilling 21 new lateral wells in the Austin Chalk formation. 

The prolific Eagle Ford Shale, as well as other shale formations, such as Marcellus, Barnett and Haynesville, has proven a major game-changer for onshore US oil and gas activities. Major players are spending billions of dollars acquiring acreage and companies in their efforts to remain in the game, while smaller independents are able to compete with higher commodity prices and enhanced technologies.

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