A subsidiary of Leucadia National Corporation, Juneau Energy, LLC, announced it acquired about 10,264 net acres of oil and gas leases in the Eagle Ford Shale formation in East Texas. The new leases are mainly in the Brazos and Burleson counties.
The company closed on the deal Sept. 17, and with the new acreage, Juneau Energy now holds 15,000 net acres within the Eagle Ford Shale, 13,500 of which are continuous.
The addition to its portfolio will allow the company to immediately begin to develop high value assets in Texas, according to Juneau Energy CEO Brad Juneau.
Oil and gas production in the Eagle Ford Shale has increased over recent years and now producers in the region are interested in improving the recovery process, the Houston Chronicle reported.
The U.S. Energy Information Administration anticipates the area to produce 1.5 million barrels of liquids daily this September but many businesses are concerned their leaving reserves behind. Companies are drilling more wells on each lease and using new technology and recovery methods, such as frac sand, to better the process but operators estimate they still leave 95 percent of oil and gas molecules behind in a well.