HOUSTON, Jan. 4, 2012 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company" or "Lucas"), today announced it has closed a purchase and sale transaction with Hall Phoenix Energy, LLC ("Hall Phoenix"), whereby the Company purchased all of Hall Phoenix's right, title and interest in certain oil, gas, and mineral leases in the Eagle Ford/Eaglebine/Austin Chalk Trend effective December 1, 2011. The properties are located in Wilson, Leon and Madison Counties, Texas.
In connection with the purchase, the Company paid approximately $6.4 million to Hall Phoenix in the form of 2,824 shares of Lucas's newly designated Series B Convertible Preferred Stock, each of which is convertible into 1,000 shares of the Company's common stock. The transaction increases the amount of Eagle Ford/Eaglebine acreage that the Company holds by approximately 5,500 net acres, of which 1,330 net acres are in Wilson County, Texas. Lucas now owns approximately 8,900 net acres in the Eagle Ford/Eaglebine Trend over 27,000 gross acres.
William A. Sawyer, President and Chief Executive Officer of the Company said, "Lucas has now expanded its holdings of the Eagle Ford trend into the Eaglebine area. We believe the purchase has made our Eagle Ford acreage, which we currently plan to monetize, more valuable."
For more information on this and other activities of the Company, visit the Lucas Energy web site at www.lucasenergy.com.
Company Website: www.lucasenergy.com
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Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Act") and Section 21E of the Securities Act of 1934, as amended (the "Exchange Act"). In particular, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements and are subject to the safe harbor created by these Acts. Any statements made in this news release about an action, projection, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration and development of oil and gas. These risks include, but are not limited to, completion risk, dry hole risk, price volatility, reserve estimation risk, regulatory risk, potential inability to secure oilfield service risk as well as general economic risks and uncertainties, as disclosed in the Company's SEC filings including its Form 10-K and Form 10-Q's. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. The Company's SEC filings are available at http://www.sec.gov.