U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 6, 2005
LEXINGTON RESOURCES, INC.
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(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA
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(State or other Jurisdiction as Specified in Charter)
00-25455 88-0365453
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(Commission file number) (I.R.S. Employer Identification No.)
7473 West Lake Mead Road
Las Vegas, Nevada 89128
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(Address of Principal Executive Offices)
702.382.5139
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(Issuer's telephone number)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERAL DEFINITIVE AGREEMENT.
Barnett Shale Project
On June 2, 2005, the Board of Directors of Lexington Resources,
Inc., a Nevada corporation (the "Company"), authorized and approved the
execution of a definitive agreement with a Texas-based limited partnership (the
"Agreement"), regarding a gas well horizontal drilling venture in the Jack,
Wise, and Palo Pinto Counties in the State of Texas (the "Barnett Shale
Project"). Pursuant to the terms and provisions of the Agreement: (i) the
Company will be able to acquire up to a maximum 75% working interest in
approximately 3,000 net leasehold acres in the Barnett Shale Project; (ii) the
Company will pay a non-refundable deposit of $100,000, which shall be credited
against the total purchase price to be paid by the Company for the working
interest in the 3,000 net leasehold acres; (iii) the Company will pay
approximately its pro-rata share of net leasehold acre it acquires; (iv) in the
event the Company purchases the maximum 75% working interest, the Company will
receive a 56.25% net revenue interest on the leases and the remaining net
revenue interest shall be reserved as an overriding royalty interest for the
Texas limited partnership; (v) the Company will carry for the Texas limited
partnership an 11.25% working interest in the drilling, completion and equipping
of the pipeline on all wells drilled on the acreage purchased by the Company,
which carried working interest will be proportionately reduced to an 8.4375%
working interest in the event the Company purchases the maximum 75% net revenue
interest; (vi) the Company will be responsible for its pro-rata share of acreage
costs; and (vii) the Company's contract operator, Oak Hills Drilling and
Operating LLC ("Oak Hills"), will be the operator for the project.
The Company anticipates, subject to financing, that the first well will be
spudded in August 2005 and that all drilling on the acquired acreage will be
completed in less than two years.
Based upon information by the American Association of Petroleum Geologists, over
one trillion cubic feet of natural has already been produced in the Barnett
Shale area in the Bend Arch-Fort Worth Basin province. The Barnett Shale area
produces more than 50% of all shale gas produced in the Untied States. Based
upon an U.S. Geological survey, management of the Company believes that a mean
of 25.7 trillion cubic feet of undiscovered natural gas, a mean of 98.5 million
barrels of undiscovered oil, and a mean of 1.1 billion barrels of undiscovered
natural gas liquids may exist in the Bend Arch-Fort Worth Basin province.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Not Applicable.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
LEXINGTON RESOURCES, INC.
Date: June 6, 2005 By:/s/ GRANT ATKINS
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Grant Atkins
President and Chief Executive Officer