HOUSTON, April 16, 2014 /PRNewswire/ -- Lucas Energy,
Inc. (NYSE MKT: LEI) ("Lucas" or
the "Company"), an independent oil and gas company with its
operations in Texas, today
announced that it has entered into an agreement with funds managed
by Ironman Energy Master Fund and John B.
Helmers (associated with Long Focus Capital Management),
pursuant to which the Company will sell up to 3,333,332 units at
$0.60 per unit for total
consideration of $2,000,000 to such
entities. The units are each comprised of one share of common
stock plus associated warrants to purchase 1,666,666 shares of
common stock at an exercise price of $1.00 per share with a five-year term. The
Company will use the net proceeds from the sale of the Units solely
for oil and gas development and for general corporate purposes.
The closing of the offering is expected to take place on or
before April 21, 2014, subject to the
satisfaction of customary closing conditions, at which time the
Company will receive the cash proceeds and deliver the
securities.
"We are encouraged to have two of our existing significant
shareholders, Ironman and Mr. Helmers, demonstrate a vote of
confidence by taking an increased stake in our Company," said
Anthony C. Schnur, Chief Executive
Officer of Lucas.
The Company also announced today that the NYSE MKT (the
"Exchange") which accepted the Company's plan of compliance dated
March 28, 2014, and granted the
Company until April 14, 2014 to
regain compliance under its plan of compliance with Section
1003(a)(iv), extended the date the Company is required to regain
compliance by to July 31, 2014.
Based on information provided by the Company, the Exchange has
determined that, in accordance with Section 1009 of the Company
Guide, Lucas has made a reasonable
demonstration of its ability to regain compliance by the end of the
extended period. Therefore, at this time, the Exchange is
prepared to continue the listing of the Company subject to certain
conditions. The Company will be subject to periodic review by
Exchange Staff during the extension period. Failure to make
progress consistent with the plan or to regain compliance with the
continued listing standards by the end of the extension period
could result in the Company being delisted from the NYSE MKT.
By July 31, 2014, the Company must be
in compliance with the Exchange's continued listing standards.The
units are being offered pursuant to a shelf registration statement
on Form S-3 (Registration Number 333-188663), which was declared
effective by the SEC on May 24, 2013.
This announcement shall not constitute an offer to sell or
the solicitation of an offer to buy these securities, nor shall
there be any offer, solicitation or sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Any offer will
be made only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
When filed with the SEC, copies of the prospectus supplement
together with the accompanying prospectus can be obtained at the
SEC's website at http://www.sec.gov, or by request at Attn:
Corporate Secretary, 3555 Timmons Lane, Suite 1550, Houston, Texas 77027.
About Lucas Energy, Inc.
Lucas Energy (NYSE MKT: LEI) is engaged in the acquisition and
development of crude oil and natural gas from various known
productive geological formations, including the Austin Chalk, Eagle
Ford and Buda / Glen Rose. Based in Houston, Lucas Energy's management team is
committed to building a platform for growth and the development of
its five million barrels of proved Eagle Ford and other oil
reserves while continuing its focus on operating efficiencies and
cost control.
For more information, please visit the updated Lucas Energy web
site at www.lucasenergy.com. Lucas Energy has updated its
website to reflect the most recent Fact Sheet and a new offset
operator map of its South Texas
acreage.
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 (including those
regarding the Company's expectations regarding the completion of
the public offering) 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, LLC
(713) 529-6600
SOURCE Lucas Energy, Inc.