HOUSTON, Aug. 5, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company") based in Houston, Texas, today announced the successful completion of its 2nd Quarter 2009-10 capital raise. Lucas accomplished its financing goal of $1.0 million during this 2nd fiscal quarter through a private equity placement of restricted securities and the sale of working interests in six undeveloped wells to two joint venture partners.
The private placement was completed August 3, 2009 and involved sophisticated "accredited investors" as defined in Regulation D, including directors of the Company; and in the aggregate, was less than five percent of the outstanding shares of common stock. The placement price was $0.60 per common share with an attached three-year warrant for the purchase of one share of common stock at an exercise price of $1.00 per share. The warrant is exercisable after six months.
The sale of the working interests was a part of a joint venture signed by Lucas with two partners. One partner is a foreign entity which acquired 80% working interest (before payout) in the six wells and committed to funding their share of the drilling and completion costs to re-enter the six wells and restore the production. The other partner acquired a 10% working interest in the six wells. The Company retained a 10% working interest in the six wells that comprise the joint venture program, and will be the operator.
William A. Sawyer, President and CEO of Lucas Energy, said, "The second quarter of the 2009-10 fiscal year has been very successful as far as our capital raise is concerned. We were able to increase our shareholder base, and to commence our workover/re-entry program thanks to the major joint venture partner that was introduced to us by Mike King, Princeton Research."
About Lucas Energy
Lucas Energy, Inc. (AMEX:LEI) is a Texas based independent crude oil and gas company that identifies, evaluates and acquires oil and gas property interests, primarily in the Austin Chalk formation of South Texas that are underperforming or have been shut-in or plugged and abandoned. These properties are revitalized by undertaking extensive re-entry and work-over procedures, including clean-up, repairs and treatments of the existing well bores and lateral extensions, as well as extending or drilling new laterals into previously nonproducing areas of the formation. By utilizing tight field and operating management controls, together with having a comprehensive understanding of the production characteristics of the Austin Chalk, the Company believes that it can increase reserves, improve production and maximize cash flow while avoiding most of the high risks of typical exploration projects.
The Company's headquarters are located at 6800 West Loop South, Suite 415, Bellaire (a suburb of Houston), Texas 77401.
The Lucas Energy logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4192
Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Lucas Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors. The Company's complete filings with the Securities and Exchange Commission are available at http://www.sec.gov.