Houston-based Lucas Energy announced in March 2014 that it will farm out ~400 Eagle Ford acres to a private independent operator in exchange for $1-million. The acreage is located on the company's Karnes County leasehold.

Lucas held back on Eagle Ford development in 2013 as it went through a restructuring process. In 2014, company officials indicate the focus has shifted to development.

Read more: Lucas Energy Reverses Production Declines With Austin Chalk Workovers

Lucas Terms of Eagle Ford Farm Out Agreement

The operator (farmee) will drill an initial horizontal well in exchange for a 75% working interest. Lucas (farmor) will retain a 25-percent carried working interest, under which the operator will bear 100-percent of the drilling costs, estimated at $2-million. In the remaining acreage, Lucas will retain a 75-percent working interest and the operator will have a 25-percent working interest.

Read more at LucasEnergy.com