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.