Lexington to expand stake in prospect

Exploration and production independent Lexington Resources said April 28 that it may acquire additional lands that make up the Coal Creek coalbed methane prospect in Hughes and Pittsburg counties in Oklahoma.

Nevada-based Lexington said it also closed the purchase of a 1,536-acre lease at Coal Creek. The company paid $422,500 pursuant to the lease agreement.

“Further lands under negotiation that form part of the same prospect may also be acquired,” the company said, noting that the entire Coal Creek prospect encompasses about 10,240 acres. Lexington’s drilling rights on the acquired acreage relate to all possible producing zones including the Hartshorne coal at about 3,500 to 4,000 feet and all higher zones, the company said.

The Hartshorne coal is the primary producing reservoir coal ranked in the medium to high volatile bituminous category known for coalbed methane production. The company plans to drill further horizontal wells into the coal seams located on the prospect.

Coal Creek represents Lexington’s third land acquisition since changing its primary business operations to oil and gas development late last year, and brings the company’s drillable gas target inventory to about 3,872 acres in Oklahoma.