Lexington Resources Acquires Stake in Barnett Shale Acreage



Lexington Resources has entered into a definitive agreement to acquire a 75% working interest in approximately 3,000 net leasehold acres in Jack, Wise, and Palo Pinto Counties in the State of Texas as part of a 20+ Barnett Shale gas well horizontal drilling venture with a Texas based Limited partnership. The Barnett Shale drilling venture is the first expansion by the Company outside its Arkoma Basin gas drilling and production initiatives currently under development in the State of Oklahoma. The first well is expected to be spudded in August with parties to the venture agreeing to drill and complete all acquired acreage in less than two years.

Under the agreement to date, Lexington has a 75% working interest commitment and is responsible for its pro-rata share of acreage costs. In addition, the Company's contract operator, Oak Hills Drilling and Operating, LLC. ("Oak Hills") becomes the Operator for the project and contributes at least one drilling rig until project completion. Oak Hills is currently operating as a contract drilling operator of horizontal gas wells in the Barnett Shale.

Lexington's Drilling and Production Operations Manager, Douglas Humphreys commented, "We are glad to be working with Texas-based Hunt family entities on this project. This association gives the venture's drilling and production efforts real added value. We hope this agreement leads us to future strategic affiliations with this group."
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