Lucas Energy Inc. (LEI) was absolutely leading the bulls in Thursday’s session on news of a purchase agreement. The company announced that is has signed a purchase agreement to acquire, from 21 different entities and individuals, working interests in producing properties and undeveloped acreage.

The assets being acquired include varied interests in two largely contiguous acreage blocks in the liquids-rich Mid-Continent region. The properties currently produce in excess of 1,200 net barrels of oil equivalent per day (BOE/d), of which 53% are liquids from 114 producing wells. The bulk of the production is from the Hunton formation, holding approximately 43,000 gross acres (9,900 net acres) in central Oklahoma.

ALSO READ: The Largest Employer in Each State

Additionally, the development drilling opportunities for at least 40 additional wells have already been identified. According to a recent third-party reserve report (as of December 1, 2015), total proved developed reserves are 5.4 million barrels of oil equivalent (MMBOE) comprised of 6% oil, 47% natural gas liquids and 47% natural gas.

Anthony C. Schnur, Lucas's chief executive officer, commented:

The completion of this transaction will raise the trajectory of opportunities for Lucas, not only as we increase our existing production base and future development opportunities, but also as we expand our reach into a key play in the Mid-continent and broaden our strategic horizons. We are extremely excited to have identified an acquisition that provides us with stable, long-lived reserves with substantial current production and ample drilling opportunities that are economic in a prolonged depressed commodity price environment. We are further encouraged by the planned upcoming additions to our board, especially the appointment of Richard N. Azar II as our Chairman. I have known Richard over the last three years, and I welcome his depth of knowledge and strategic sense to our Company.

ALSO READ: Merrill Lynch Has 4 Big 2015 Losers to Buy for Big Potential 2016 Gains

Shares of Lucas Energy were trading up over 400% at $8.86 on Thursday, with a consensus analyst price target of $2.00 and a 52-week trading range of $1.33 to $11.25.

Related Articles

• 11 States Least Likely to Legalize Marijuana
• 12 Things Not to Do If You Win the Lottery
• 5 Top Goldman Sachs Stocks to Buy for 2016