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.