Lucas Energy and Terra Energy & Resource Technologies have agreed to a joint development of oil and gas properties in the Texas which will enhance the future of both of these corporations.
Lucas Energy has gained a reputation as a growing company that identifies, evaluates and acquires leasehold property interests, primarily in the Austin Chalk formation of the middle Gulf Coast of Texas. These property interests are underperforming or have been shut-in or plugged and abandoned. Lucas Energy comes in and revitalizes these interests and turns them into sound investment opportunities.
Terra Energy & Resource Technologies is a unique company that provides exploration services utilizing a suite of proprietary innovative technologies for exploration of a wide range of mineral resources such as oil & gas, metals, kimberlites, uranium, water, and other minerals.
The talents of Terra and the skills of Lucas have joined forces for three projects in Atascosa County, Texas which will utilize the application of the innovative technologies of Terra and the licensed territories of Lucas.
Terra proposed the application of its STeP and NAGS technologies to Lucas which has the potential to survey three separate leases throughout the state of Texas. Terra will provide its technology services to Lucas Energy on a substantially reduced fee basis, and Lucas Energy is to assign to Terra a 5% free-carried-interest in connection with the oil and gas production from any additional recompletions, or new drilling from the three properties, and grant Terra up to 30% in non-promoted participation interest.
Leading the way at Lucas Energy is William Sawyer who serves as the company CEO. When asked about the potential effect of Lucas and Terra forming this relationship, Sawyer was quoted as saying, “The Lucas Energy mission is to provide its shareholders with the lowest drilling risk possible. Terra Energy & Resource Technologies helps us achieve substantial risk reduction through its cutting-edge technologies.”
Dmitry Vibaum, CEO of Terra Energy & Resource Technologies, spoke about how this agreement will benefit the people of Texas and the shareholders of Terra. Vibraum stated, “The terms of the agreement are structured so that Terra not only receives service fees, it will also receive a carried interest and the chance to leverage the intelligence it gathers and participate in prospects on a non-promoted basis if they appear favorable. The project is set to start within weeks and if it lives up to its promise, will be extremely positive for Terra shareholders.”
Lucas Energy is trading in the $0.59 range while Terra Energy & Resource Technologies is trading around $0.09. The effects of this deal could help both companies evolve into major players in their markets.
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