Our luncheon on December 10 is being hosted by Lucas Energy (LEI). The CEO will be discussing their recent Eagle Ford Shale joint venture with Hilcorp (a private company based here in Houston).
Members need to register with me.
Non-members can pay $30 on-line or $40 at the door.
See more details on the website.
Dan
Luncheon on December 10
Luncheon on December 10
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Luncheon on December 10
HOUSTON, Nov. 29, 2010 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company based in Houston, Texas, has provided an internal management update based upon its revised Eagle Ford potential reserves (proved and probable) as of September 30, 2010.
The net present value at a 10% discount rate ("PV10") of the potential reserves estimated for Lucas by Forrest A. Garb & Associates, Inc. (Garb) as of April 1, 2010 was $51.9 million. Lucas performed an internal evaluation, as of September 30, 2010, and calculated an $83.6 million PV10 valuation for Lucas potential reserves. Garb's report as of April 1, 2010 estimated 2.7 million barrels of oil equivalent (BOE) of potential reserves, whereas Lucas' internal report, as of September 30, 2010, had an estimated 4.3 million BOE of potential reserves.
William A. Sawyer, President and CEO of Lucas Energy, said, "Lucas sees much greater potential reserves from the oil window of the Eagle Ford formation than previously recognized by industry reserve engineers. Our research and internal calculations of potential reserves and PV10 values are much higher than in April, which results in a revised net asset value for Lucas of approximately $6 per share currently."
The reason for the management update is based on the following major changes in key assumptions that have occurred since April 1, 2010: (a) Lucas collected data from 151 Eagle Ford wells in its area of activity, which averages 394,000 BOE of recoverable reserves from each lateral well bore versus the 150,000 BOE assumed by third party reserve engineers in April; (b) the number of lateral well bores with Eagle Ford potential owned by Lucas has increased from 10 wells at April 1, 2010 to 51 wells at September 30, 2010; and (c) the oil prices assumed at the time of the Garb report were assumed to average $67.48 per barrel versus the $73.19 per barrel average at September 30, 2010.
All oil and gas reserve quantities and discounted values are estimates by definition with inherent uncertainties and complexities implicit in their formulation. Lucas cannot assure its investors that all the potential reserve quantities and PV10 values it has estimated will be recognized as proved reserves in the Company's upcoming third party reserve report as of April 1, 2011. For more information on this and other activities of the Company, see the Lucas Energy web site www.lucasenergy.com.
The net present value at a 10% discount rate ("PV10") of the potential reserves estimated for Lucas by Forrest A. Garb & Associates, Inc. (Garb) as of April 1, 2010 was $51.9 million. Lucas performed an internal evaluation, as of September 30, 2010, and calculated an $83.6 million PV10 valuation for Lucas potential reserves. Garb's report as of April 1, 2010 estimated 2.7 million barrels of oil equivalent (BOE) of potential reserves, whereas Lucas' internal report, as of September 30, 2010, had an estimated 4.3 million BOE of potential reserves.
William A. Sawyer, President and CEO of Lucas Energy, said, "Lucas sees much greater potential reserves from the oil window of the Eagle Ford formation than previously recognized by industry reserve engineers. Our research and internal calculations of potential reserves and PV10 values are much higher than in April, which results in a revised net asset value for Lucas of approximately $6 per share currently."
The reason for the management update is based on the following major changes in key assumptions that have occurred since April 1, 2010: (a) Lucas collected data from 151 Eagle Ford wells in its area of activity, which averages 394,000 BOE of recoverable reserves from each lateral well bore versus the 150,000 BOE assumed by third party reserve engineers in April; (b) the number of lateral well bores with Eagle Ford potential owned by Lucas has increased from 10 wells at April 1, 2010 to 51 wells at September 30, 2010; and (c) the oil prices assumed at the time of the Garb report were assumed to average $67.48 per barrel versus the $73.19 per barrel average at September 30, 2010.
All oil and gas reserve quantities and discounted values are estimates by definition with inherent uncertainties and complexities implicit in their formulation. Lucas cannot assure its investors that all the potential reserve quantities and PV10 values it has estimated will be recognized as proved reserves in the Company's upcoming third party reserve report as of April 1, 2011. For more information on this and other activities of the Company, see the Lucas Energy web site www.lucasenergy.com.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Luncheon on December 10
Was the food lousy and everyone has too much of a tummy ache to comment, or what? Wasn't the 10th the date of their annual meeting also? As I wade through the disaster on my desk, I find yellow postcards from Lucas' IR firm, Acumen Investment Services of Hauppauge, NY suggesting we call in for an update. They couldn't find an IR firm in the patch that knows the difference between a spud and baked potato? Grumble, grumble!
Re: Luncheon on December 10
I'm not recommending Lucas yet. They do have some upside in the Eagle Ford on the JV with Hilcorp. Also, they should be announcing terms of another Eagle Ford JV soon. I want to see results first. - Dan
There presentation is on our website under the Watch List tab.
Dan
There presentation is on our website under the Watch List tab.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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celtic
Re: Luncheon on December 10
Would appreciate any additional thoughts on Lucas. 
Seems to be going positive. Thanks in advance.
Seems to be going positive. Thanks in advance.