Lucas Energy Inc. started the New Year with a new name and entrance into one of the hottest basins in the U.S.
On Jan. 3, the Houston-based company said it entered the Permian Basin with the purchase of 3,630 net mineral acres targeting the San Andres horizontal play in the Central Basin Platform from an undisclosed company.
To reflect the shift from its Austin Chalk and Eagle Ford roots, Lucas also said it will change its name to Camber Energy Inc., effective Jan. 5. The company originally launched plans to rebrand itself as Camber in December 2015 with the acquisition of assets in Oklahoma's Hunton oil play.
RELATED: New Name, New Place: Lucas Energy Enters Midcon, Plans Rebranding
"With this initial leasehold position, we have established our entry into the prolific Permian Basin," Anthony C. Schnur, Camber Energy's CEO, said in a statement. "We believe the similarities of the San Andres to our existing Hunton properties play well into our technical strengths in drilling carbonates, as well as water and other infrastructure management capabilities."
The company's Permian entry is part of a lease acquisition and participation agreement with a privately-held, Houston-based oil and gas holding company. Under the agreement, the companies formed an area of mutual interest covering about 20,000 net mineral acres.
Camber will purchase 90% working interest in the initial lease comprised of 16,322 gross (3,630 net) mineral acres for $1.453 million in cash. The undisclosed company will hold the remaining 10% interest.
Camber will also issue 200,000 unregistered shares of its common stock to the undisclosed company and pay an acreage fee based on the total leasehold and brokerage costs.
The company also hired Thomas E. Hardisty as senior vice president of land and business development and J. Mark Bunch as senior vice president of engineering and operations. Hardisty and Bunch each bring more than 30 years of oil industry experience to Camber, according to the release.
The company's ticker symbol changed to "CEI" under which it will begin trading on the NYSE MKT exchange on Jan. 5.
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