HOUSTON, Dec. 18, 2013 /PRNewswire/ -- Lucas Energy, Inc. (NYSE MKT: LEI) ("Lucas" or the "Company"), an independent oil and gas company with its main operations in Texas, today provided an operational update on the status of its drilling activity in the Austin Chalk and other certain matters.
"After nine months of organizational restructuring and improvements under the leadership of Chief Executive Officer, Anthony "Tony" Schnur and former board chair, Ryan Morris, the Company is singularly focused on its engineering and operational functions for the development of its five million barrels of proved reserves in central Texas," said Lucas' new Chairman of the Board, Ken Daraie.
During the first three quarters of calendar 2013, ending on September 30, the Company generated positive working capital of $1.1 million, reduced total debt by approximately $20 million, lowered lease operating expense (LOE) by 47% and decreased general & administrative expense by 31%(1).
In September, Lucas launched its work-over program in the Austin Chalk, completing its fourth workover on November 30th, and is currently in the process of putting the well back on production. "So far, this workover program as not only stabilized, but reversed the recent declines in production, adding 40 barrels of oil per day (BOPD) of gross production in November alone," added Mr. Daraie.
(Please reference the link below for a graphic depiction of our production profile)
Additionally, the Company completed the first of two planned horizontal drilling projects, the Merit RVS #1 Sidetrack in Gonzales County, Texas. On November 24, Lucas swabbed the well and recovered 113 barrels per day of fluid in total, of which 47 BOPD was crude oil. The well is on continuous production and has thus far returned just over 50% of load water. Lucas plans to spud its second Austin Chalk re-entry, the Upton Ruddock #1 Sidetrack, on a location has been already been constructed, and we are waiting on the arrival of a drilling rig. The Company has an inventory of 15 re-entry candidates, which are being reviewed for further development.
Platypus Hunter-1H: Lucas participated in the recently-completed Platypus Hunter-1H well operated by Penn Virginia. Penn Virginia completed the horizontal well in the Eagleville field in Lavaca County, Texas. During its first 24 hours, the well flowed 1,651 BOPD and 1,512 thousand cubic feet per day (Mcfd) from the Eagleford reservoir.
"Although Lucas' working interest is only 1.48% in the Platypus Hunter, we believe the well exemplifies the quality and potential of its leasehold position in the Eagleford play," Mr. Daraie continued. "Also, our development program in the Austin Chalk is progressing as planned with our continuing well cleanout program and the addition of horizontal Austin Chalk re-entries. This has allowed Lucas to access productive layers within the Austin Chalk formation, believed to be separated by impermeable layers of ash, at significantly lower costs by utilizing and reentering existing horizontal wells.
"The Company continues to focus on further refining its operating efficiency and productivity of existing wells, as well as the development initiatives before it. The Company is actively reviewing a number of opportunities for strategic partnership, acquisitions, and mergers with a focus on development of reserves, increasing revenue, and improving shareholder value," concluded Mr. Daraie.
(1) Based on unaudited quarterly financial information provided in Company's 10-Q filings.
About Lucas Energy, Inc.
Lucas Energy is an asset-rich, independent oil and gas company developing its acreage positions in the Eagle Ford, Austin Chalk, Eaglebine and Buda & Glen Rose resource plays in central Texas. Based in Houston, Texas, Lucas Energy's management team is committed to creating shareholder value through developing its asset base, improving operating efficiencies, and building a strong balance sheet.
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 risk 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 in 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.
Carol Coale / Ken Dennard
Dennard • Lascar Associates, LLC
SOURCE Lucas Energy, Inc.