HOUSTON, June 30, 2015 /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 on June 25, 2015, the
Company entered into a Settlement Agreement and Mutual Release with
Victory Energy Corporation ("Victory"). As part of the settlement,
Lucas will transfer certain
properties to Victory including a 3.27581% Leasehold working
interest in the Dingo Unit and a 1.481330% Leasehold working
interest in the Platypus Unit; and Victory will assign two
Karnes County well-bores (the
Boggs Unit No. 1H and the Boggs Unit No. 2H) to Earthstone
Energy/Oak Valley Resources ("Oak Valley"). Regarding the
pre-merger funding agreements and amounts paid by Victory, the
settlement includes the return of a net of an aggregate of
$54,020 in pre-drilling costs from
Oak Valley Resources to be paid to Lucas and finally, the forgiveness by Victory
of debt Lucas owed in the amount
of $600,000 in consideration for the
issuance by Lucas of 1.1 million
shares of common stock. A concurrent Settlement Agreement between
Lucas, Victory and Oak Valley
Resources has also been entered into.
All parties have agreed to a Mutual Release of all claims under
the Settlement Agreement including, counterclaims, legal actions,
contract obligations, suits, losses, and any or all other
obligations except in the event of a dispute or breach by
Lucas or Victory arising from
certain actions or omissions with regard to the agreement.
In a separate transaction with Earthstone and its affiliate, Oak
Valley Resources, Lucas has sold
139.04 net acres of oil and gas properties located in Karnes County, Texas, while retaining the
right to participate in future operations for up to 20% of an
8/8ths interest. The total consideration paid for the property was
approximately $350,000.
"With our entry into these Settlements, we can once again
concentrate our efforts toward moving the company forward," stated
Anthony C. Schnur, Chief Executive
Officer of Lucas, who continued,
"To that end, we are pursuing opportunities where ready capital is
available whether that is from professional investment funds or
potential business combination partners."
The transactions outlined herein have only recently been entered
into, but because they are material and have occurred subsequent to
the year ended March 31, 2015, they
are required to be included in our Annual Report on Form 10-K for
the year ended March 31, 2015.
Consequently, the Company will be delayed in filing its Annual
Report on Form 10-K for the year ended March
31, 2015, provided such report will be filed within 15 days
of the original due date of such Form 10-K pursuant to applicable
SEC rules and regulations.
About Lucas Energy, Inc.
Lucas Energy (NYSE MKT: LEI) is engaged in the development of
crude oil and natural gas in the Austin Chalk and Eagle Ford
formations in South Texas. 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 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. These statements include
statements regarding our planned fund raising and drilling
activities, the planned status and timing of production, the
availability of funding, and related disclosures. 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-Q, 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.
Lucas Investor Relations Contact
Carol Coale / Ken Dennard
Dennard ▪ Lascar Associates, LLC
(713) 529-6600
ccoale@dennardlascar.com
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SOURCE Lucas Energy, Inc.