Lucas Energy Inc. (NYSE: LEI) landed a deal to drill wells in the Eagle Ford Shale, the company said Aug. 25.

CATI Operating LLC, the Houston company's subsidiary, entered an agreement with its senior lender to borrow $1 million, effective Aug. 15. The company plans to use the funds to participate in a joint operating agreement with Lonestar Resources US Inc. (NASDAQ: LONE) to drill and complete certain Eagle Ford wells.

The agreement with Lonestar covers more than 1,450 gross acres and Lucas' participation will vary from an 8% to a 14% working interest in the units, according to a press release.

Lucas will initially participate in the Cyclone #9H and #10H wells on Lonestar's Harvey Johnson lease in southern Gonzales County in South Texas. Lonestar drilled and completed the two wells and place them onstream on May 12, the company said Aug. 19.

CATI has a working interest of 8% in the Cyclone #9H and #10H wells, said Anthony C. Schnur, CEO of Lucas.

"This represents another step in the growth and expansion of our assets and our company. It is anticipated that the wells will enhance our reserve portfolio and production in addition to securing the leaseholds of the locations," Schnur said in a statement.

Under the terms of the note, a total of 80% of all cash flow generated by the wells is required to first be paid to the lender to satisfy amounts owed. The remaining 20% will be used by CATI for lease and other operating expenses and capex.