HOUSTON, Nov. 21, 2016 /PRNewswire/ -- Lucas Energy,
Inc. (NYSE MKT: LEI) ("Lucas" or
the "Company"), an independent oil and gas company with its
operations in Texas and
Oklahoma, today announced that, on
November 17, 2016, it has received
gross proceeds of $4.5 million for
the second tranche of the sale and issuance of the convertible
shares and entered into a third amendment to its stock purchase
agreement with an accredited institutional investor ("Selling
Shareholder"), dated November 16,
2016. As previously reported, on April
6, 2016, the Company agreed to a series of instruments
convertible into common stock. The Company sought to ensure
liquidity upon the closing of its acquisition of assets in
Oklahoma and Texas which was completed, and subsequently
announced, on August 25, 2016.
Upon conversion, the common shares are issued in tranches to meet
the condition that the Selling Shareholder's ownership interest
does not exceed 4.99% on any given date. The third and final
tranche, for an additional $5.0
million must be exercised on or before March 31, 2017. More information is
available in the Company's Form 8-K filed with the U.S. Securities
and Exchange Commission on April 6,
2016 and subsequent 8-K and Rule 424(3)(b) filings.
"This funding arrangement was established to finance acquisition
activity, initial development drilling and field optimization work,
which has already commenced," said Anthony
C. Schnur, Chief Executive Officer of Lucas Energy.
"We are actively pursuing opportunities within or near our existing
operations and acquisitions of leasehold acreage to expand the
Company's drilling inventory. As we consider producing
properties, and all opportunities, we are focused on property(ies)
that conform to our technical expertise. The Company believes
it significantly increases the successful management and
development of an acquisition by adhering to this standard.
"What we established in April was the ability to access capital
in an extremely uncertain and disruptive oil and gas
environment. That longer term view is now fueling our
go-forward plans."
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 and natural gas
in the Austin Chalk and Eagle Ford formations in south Texas, the Permian Basin in west Texas, and the Hunton formation in central
Oklahoma. 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, opinions, 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 on our website
or at http://www.sec.gov.
Contacts:
|
Carol Coale / Ken
Dennard
|
|
Dennard ▪ Lascar
Associates LLC
|
|
(713)
529-6600
|
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SOURCE Lucas Energy, Inc.