LEI...anyone follow this closely??

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bobs
Posts: 221
Joined: Mon Apr 26, 2010 2:32 pm

LEI...anyone follow this closely??

Post by bobs »

Any thoughts on whether the LEI huge run up is for real???
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Lucas Energy (LEI)

Post by dan_s »

I'm not recommending this one at all since I have not taken a good look at it in over a year. However, they have recently closed a deal on their Eagleford Shale leases (selling most of their deep rights) that allowe the company to pay off all of its bank debt. I consider this a one time event. Bill Sawyers is a solid operations guy who is primarily focused on working over shallow Austin Chalk wells.
Dan

HOUSTON, May 10, 2010 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI), an independent oil and gas company (the "Company") based in Houston, Texas, today announced that the Company has closed the first part of an Eagle Ford Shale joint venture with Hilcorp Energy I, L.P., an affiliate of Hilcorp Energy Company, one of the largest privately owned oil and gas companies in the United States. Hilcorp Energy I, L.P. acquired part of the Lucas Energy, Inc. deep rights (Eagle Ford rights) in Gonzales County, Texas and paid Lucas $7.52 million at closing. The remainder of the Lucas Eagle Ford shale properties will be part of a second closing that is expected to take place later in this month.

The purpose of the joint venture with Hilcorp is the development of the Eagle Ford Shale properties owned by Lucas Energy, Inc. in Gonzales County, Texas. Hilcorp is acquiring an 85% working interest in the deep rights, including the Eagle Ford Shale formation. Lucas will retain a 15% working interest. The joint venture does not include any producing wells or current production.

William A. Sawyer, President and CEO of Lucas Energy, said, "This is a major leap forward for Lucas. Hilcorp is one of the finest oil and gas companies in the U.S. today. We are proud to be a partner with them. Their expertise in drilling and completions will move our Eagle Ford program forward at a much faster pace than we could have done alone. The first thing we did with the capital was to pay off our Amegy Bank debt." For more information on this and other activities of the Company, see the Lucas Energy web site http://www.lucasenergy.com/.
Dan Steffens
Energy Prospectus Group
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