HOUSTON, Oct. 20, 2016 /PRNewswire/ -- Lucas Energy,
Inc. (NYSE MKT: LEI) ("Lucas" or
the "Company"),an independent oil and gas company with operations
in Oklahoma and Texas, today updated its operational activity
in the Eagle Ford shale and development activity in
Oklahoma.
Specifically, in south Gonzales
County, Texas, in the Eagle Ford shale, the Company
participated in the Cyclone #9H well that tested 598 barrels of oil
equivalent per day (Boe/d) and a 30-day initial production rate of
486 Boe/d. The Cyclone #10H tested 631 Boe/d and a 30-day
initial production rate of 521 Boe/d. Originally estimated to
cost an average of $5.2 million,
these wells have been drilled and completed at an average cost of
$4.7 million. Both are
producing approximately 90% crude oil from a processed three-stream
basis on a 18/64" choke. Lucas owns an 8% working interest in these two
wells.
Lucas's Griffin 1H Austin Chalk
well (100% working interest) in Karnes
County was recently re-activated after being shut-in while
two nearby Eagle Ford wells were being completed. The Griffin
1H came back on production in October at 55 boe/d on the initial
48-hour test after having produced 5 Boe/d prior to
shut-in.
The Company has kicked off a maintenance and upgrade program
budgeted at $0.5 million to be spent
over the next 60 days with the expectation of a five-month payout
on the investment. In Oklahoma, the program includes the
repair and/or the replacement of down-hole pumps in addition to
mechanical repairs and upgrades on certain wells in Texas. Lucas expects to continue these
maintenance operations as it reviews the new well drilling
locations in its core areas of development.
"Since the Segundo acquisition was announced in December 2015, the prices for oil, natural gas
and NGLs have increased on average by over 40%," said Anthony C. Schnur, the Chief Executive Officer
of Lucas Energy. "The change in the commodity price
environment has allowed Lucas to
reassess its opportunities to increase shareholder value. As
we ramp up production on our legacy and newly-acquired assets, the
Company continues to aggressively pursue acquisition opportunities
with both producing and nonproducing reserves. We are
convinced that the state of 'lower for longer' commodity price
environment offers exceptional value on the asset acquisition
front."
About Lucas Energy
Lucas Energy, Inc. (NYSE MKT: LEI) is engaged in the acquisition
and development of crude oil and natural gas from various known
productive geological formations, including the Hunton Formation in
Central Oklahoma and the Austin
Chalk and Eagle Ford shale in South Texas. Based in
Houston, Lucas Energy's management
team is committed to building a platform for growth and the
development of its oil and gas reserves while continuing its focus
on operating efficiencies and cost control. For more information,
please visit 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, LLC
|
|
(713)
529-6600
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lucas-energy-provides-operational-update-300348013.html
SOURCE Lucas Energy, Inc.