All leases have no depth restrictions plus the potential to add two to three sections (640 acres per section) for additional drilling.
Dragon would have enough of its own acreage to drill eight Cotton Valley wells and possible Haynesville Shale zones as well.
The purchase will happen in stages allowing for the turning on of the first purchase, then the second, then the third.
Dragon expects to close on the first of these leases this week.
The company said that October production is estimated to see a 3,000-4,000 barrel monthly increase in production.
Dragon hopes to increase production to 10,000 barrels for the month of December after the purchase is completed.
