Source: Lucas Energy
Lucas Energy, Inc. (NYSE:LEI) has entered into a Joint Venture agreement with Marathon Oil (East Texas) LP, a subsidiary of Marathon Oil Corporation (NYSE:MRO), for the development of the Eagle Ford and Buda formations in Wilson County, Texas.
The Marathon affiliate has acquired 50% of the leasehold interest rights, representing approximately 1,000 net acres (below the base of the Austin Chalk formation) held by Lucas in a majority of Lucas' leases in Wilson County, Texas. Marathon Oil Corporation's subsidiary will be the operator of the joint venture, but Lucas will still own and operate rights above the Eagle Ford, primarily the Austin Chalk formation.
"Lucas Energy is pleased to be a joint venture partner with a major oil company," commented William A. Sawyer, President and CEO of Lucas Energy, who continued, "This is another historic day for our Company, and a continuation of our business plan to develop our Eagle Ford assets."
Lucas has a variety of working interests in Wilson County, Texas ranging from 20% up to 100%. The Austin Chalk formation (and above), the current well bores and equipment, and the current production from the Austin Chalk and above are not included in this transaction.