Lonestar Resources US Inc. announced that it has entered into a Joint Development Agreement in Gonzales County with one of the largest producers in the Eagle Ford Shale which encompasses an Area of Mutual Interest (“AMI”) totaling approximately 15,000 acres. The agreement calls for Lonestar to operate a minimum of 3 to 4 Eagle Ford Shale wells annually on behalf of the two companies through 2022 that are intended to hold-by-production (“HBP”) approximately 6,000 gross acres within the AMI. The agreement gives Lonestar’s partner the option to participate in each well with a 50% WI or to participate via a carried working interest that ranges from approximately 9-17%, depending on location. The JDA, which requires lower levels of annual gross drilling activity than Lonestar has engaged in on its own since becoming active in Gonzales County in 2016, provides significant benefits for both parties. For Lonestar, the Joint Development Agreement significantly expands and consolidates the leasehold footprint associated with its prolific Hawkeye area, which is Lonestar’s oiliest asset. Collectively, the JDA allows for the two companies to consolidate their respective positions into a single development plan which should: 1) maximize lateral lengths; 2) optimize economic returns; and 3) efficiently HBP the combined leasehold with the fewest number of wells. Further, the JDA will allow Lonestar to increase its inventory of gross drilling locations by roughly 50% in the Hawkeye area to a total of 32 while delivering average lateral lengths of over 9,500’, with many locations exceeding 12,000’. The benefits outlined above illustrate how the JDA provides a clear path for efficiently developing Lonestar’s ever-growing leasehold in the Cyclone/Hawkeye area.