Lucas's Eagle Ford Holdings May Hold Quadruple The Oil Previously Thought

Houston-based Lucas Energy announced an internal review has revealed its properties in the Eagle Ford shale may hold nearly four times as much potential oil as believed.

The review found the total potential of Lucas’s holdings in Eagle Ford may be as high as 14.5 million barrels of oil. Previous estimates put the figure at less than 4 million barrels.

The company is looking to sell its Eagle Ford holdings in order to concentrate its efforts on other properties — notably in the Austin Chalk formation of Central Texas.  William Sawyer is Lucas Energy’s president and CEO.

“The Austin Chalk, we can drill a new well for about $3-4 million. We can drill a new lateral off an old well for about $1-2 million. And the Eagle Ford takes about $10 million to drill a new well.”

Sawyer says, under the circumstances, the cash value of its Eagle Ford properties is worth more to Lucas and its shareholders than the undeveloped potential of those holdings.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...