HOUSTON, Aug. 25, 2016 /PRNewswire/ -- Lucas Energy, Inc.
(NYSE MKT: LEI) ("Lucas" or the
"Company"), an independent oil and gas company with its operations
in central Texas, today announced
that its wholly-owned subsidiary, CATI Operating, LLC ("CATI"),
entered into an agreement with its senior lender, as evidenced by a
promissory note, to borrow $1
million, effective August 15,
2016. The Company plans to use the funds to participate in
the drilling and completion of certain Eagle Ford wells under a
joint operating agreement with Lonestar Resources US, Inc.
("Lonestar") and conduct improvement maintenance operations on the
existing assets of CATI. The agreement with Lonestar covers
over 1,450 gross acres and Lucas'
participation will vary from an 8% to a 14% working interest in the
units.
"We are pleased to partner with Lonestar, a known and successful
operator in the Eagle Ford, by initially participating in the
Cyclone #9H and #10H wells in which CATI has a working interest of
8%," said Anthony C. Schnur, Chief
Executive Officer of Lucas Energy. "This represents another step in
the growth and expansion of our assets and our company. It is
anticipated that the wells will enhance our reserve portfolio and
production in addition to securing the leaseholds of the
locations."
Under the terms of the note, a total of 80% of all cash flow
generated by the wells is required to first be paid to satisfy
amounts owed under the new and existing notes with the lender with
the remaining 20% to be used by CATI for lease and other operating
expenses and capital expenditures. Please refer to the
Company's Current Report on Form 8-K, filed with the SEC on
August 25, 2016, for more information
regarding the terms and conditions of the note and funding.
About Lucas Energy, Inc.
Based in Houston, Texas, Lucas
Energy (NYSE MKT: LEI) is a growth-oriented, independent oil and
gas company engaged in the development of crude oil, natural gas
and natural gas liquids in the Hunton formation in Central Oklahoma and the Austin Chalk and
Eagle Ford formations in South
Texas.
For more information, please visit the updated Lucas Energy web
site at www.lucasenergy.com.
Safe Harbor Statement and Disclaimer
This news release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements give our current
expectations, opinion, belief or forecasts of future events and
performance. A statement identified by the use of
forward-looking words including "may," "expects," "projects,"
"anticipates," "plans," "believes," "estimate," "should," and
certain of the other foregoing statements may be deemed
forward-looking statements. Although Lucas 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 news release. These include
risks inherent in natural gas and oil drilling and production
activities, including risks of fire, explosion, blowouts, pipe
failure, casing collapse, unusual or unexpected formation
pressures, environmental hazards, and other operating and
production risks, 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; delays in receipt of drilling
permits; risks with respect to natural gas and oil prices, a
material decline which could cause Lucas to delay or suspend planned drilling
operations or reduce production levels; 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 natural gas and oil prices; risks relating to
unexpected adverse developments in the status of properties; risks
relating to the absence or delay in receipt of government approvals
or fourth party consents; and other risks described in Lucas's Annual Report on Form 10-K and other
filings with the SEC, available at the SEC's website at
www.sec.gov. 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.
Contacts:
|
Carol Coale / Ken
Dennard
|
|
Dennard • Lascar Associates
|
|
(713)
529-6600
|
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SOURCE Lucas Energy, Inc.