Lucas Energy to Join with Victory

Merger to Provide Needed Capital for Eagle Ford Interests
Lucas Energy Focus Area

Lucas Energy Focus Area

Analysts have predicted that when the dust settles from plummeting crude prices, the real victims will be small energy companies. Big corporations have been slashing budgets to help them weather the storm, but smaller companies often don’t have the resources to carry them long term and it is beginning to show.

One such company is Lucas Energy, an Eagle Ford shale oil and gas exploration and production company located in Houston that maintains interests in over 10,000 acres in South and East Texas. Lucas has been scrambling to stay on top of its obligations and recently slashed its expenses by approximately $160,000 per month. But these efforts have not been enough to keep the company out of trouble. Last week, Lucas confirmed that they defaulted on a $7.7 million debt.

In a prepared statement, CEO Anthony Schnur said, “The plunge in crude oil prices has required us to reconsider all alternatives. We are actively and aggressively pursuing options to secure funding through a corporate combination or project financing arrangement. We believe we have made significant progress toward establishing a definitive path forward. Management remains confident that a suitable solution will be agreed upon in the coming weeks and resulting public announcement at the appropriate time.

Related: Lucas Energy Announces Eagle Ford Joint Venture

Related: Lucas Energy Farms Out Eagle Ford Acreage for $1 Million

A ‘suitable solution’ surfaced yesterday as the company announced it had executed a letter of intent for a proposed business combination with Victory Energy Corporation. This is the preliminary step to an official merger agreement that allows the companies to negotiate exclusively. Part of the agreement will be to provide for the capital necessary for Lucas to satisfy its obligations for its Eagle Ford wells, accounts payable and necessary working capital.

Read more at lucasenergy.com

 

 

Lucas Energy Announces Eagle Ford Joint Venture

Lucas Will Receive $444,000 in Exchange for 50% Working Interest in 400 Karnes County Acres
Lucas Energy Eagle Ford Acreage Map

Lucas Energy Eagle Ford Acreage Map | Click to Enlarge

Houston-based Lucas Energy Inc. has signed a joint venture agreement to develop its Eagle Ford Karnes County acreage with Oak Valley Resources, LLC.

Lucas, which is in financial trouble, recently received an extension from the New York Stock Exchange (NYSE) through October to avoid delisting. Lucas management indicates the joint venture meets the company’s objective to focus on Eagle Ford drilling and development, therefore maximizing production and cash flow.

Read more: Lucas Energy Sells Stock for Cash As it Attempts to Regain Compliance with NYSE

CEO Anthony Schnur, said, “we are pleased to finalize this joint venture agreement with a respected and experienced independent operator to begin to develop our Eagle Ford reserves in south Texas. Our objective is to continue to focus on drilling our most valuable asset, our Eagle Ford shale acreage, in order to maximize production and grow cash flow. We will continue to seek appropriate opportunities to work with Oak Valley Resources on future drilling projects.”

At closing, Lucas will receive $444,000 for a 50% working interest on approximately 400 acres. Oak Valley will manage the drilling of the wells and each company will bear 50% of the drilling and completion costs. Once the wells are on production and initial oil sales begin, all revenues and operating costs will also be split between the parties on a 50%-50% basis.  The first well is expected to be spudded no later than December 2014.  The joint venture expects to drill a minimum of four wells on the property.

Read more at lucasenergy.com 

Lucas Energy Sells Stock for Cash As It Attempts to Regain Compliance with NYSE

Deal Will Yield $2 Million for Eagle Ford Development
Lucas Energy

Lucas Energy Logo | Click to Enlarge

Houston-based Lucas Energy has entered into an agreement to sell shares of its stock for $2-million to funds managed by two of it’s existing shareholders – Ironman Energy Master Fund and John B. Helmers (Long Focus Capital Management).

The Eagle Ford focused company is facing de-listing by the New York Stock Exchange (NYSE), and has until July 31, 2014, to regain compliance. This $2-million equity offering extends the original compliance deadline of April 14, 2014, which was set by the NYSE from the company’s initial compliance plan on March 28, 2014. Lucas Energy intends to use the proceeds for continued oil and gas development in the Eagle Ford.

[Read more…]

Lucas Energy Farms Out Eagle Ford Acreage for $1 Million

~400 Karnes County Acres Included in Farmout Agreement
Lucas Energy Leasehold Map

Lucas Energy Leasehold Map | Click to Enlarge

Houston-based Lucas Energy announced in March 2014 that it will farm out ~400 Eagle Ford acres to a private independent operator in exchange for $1-million. The acreage is located on the company’s Karnes County leasehold.

Lucas held back on Eagle Ford development in 2013 as it went through a restructuring process. In 2014, company officials indicate the focus has shifted to development.

[Read more…]

Lucas Energy Reverses Production Declines With Austin Chalk Workovers

Four Workovers and a Horizontal Re-entry Have Been Completed Since September
Lucas Energy Map of Offset Operators - Eagle Ford

Lucas Energy Map of Offset Operators – Eagle Ford | Click to Enlarge

Lucas Energy has reversed production declines with four workovers in the Austin Chalk.

After nine months of restructuring, the company is moving forward with development of its Austin Chalk and Eagle Ford assets. [Read more…]

Lucas Energy Adds 5,500 Eagle Ford – Eaglebine Acres

Lucas Energy purchased 5,500 acres of mineral leases prospective for the Austin Chalk, Eagle Ford and Eaglebine formations this week from Hall Phoenix Energy. The company bought the leases with $6.4 million of convertible stock. 1,300 acres are located in Wilson County, TX and the remaining acreage likely falls in the northern portion of the Eagle Ford region where the Eaglebine is prospective. [Read more…]

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