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.

In 2013, Lucas held back on Eagle Ford development as it went through a restructuring process. In 2014, company officials indicated the focus would be on asset development. A recent farm-out of ~400 acres in Karnes County for $1-million in March 2014 was in-keeping with the company's strategy for the year.

Read more: Lucas Energy Farms Out Eagle Ford Acreage for $1-Million

Lucas Energy Deal Terms with Ironman Energy Master Fund and John B. Helmers

Under the deal, Lucas will sell up to 3,333,332 units at 60 cents per unit to Ironman Energy Master Fund and John B. Helmers (Long Focus Capital Managmenet).

Each unit is comprised of one share of common stock plus associated warrants to purchase 1,666,666 shares of common stock at an exercise price of $1 per share with a five-year term. Officials say Lucas will receive cash proceeds when the deal closes on April 21st.

Read more at LucasEnergy.com