News Feed Item

Lucas Energy Announces Fiscal 2014 Third Quarter Results

Company Engages Investment Banking Firm

HOUSTON, Feb. 18, 2014 /PRNewswire/ -- Lucas Energy, Inc. (NYSE MKT: LEI) ("Lucas" or the "Company"), an independent oil and gas company with its operations in Texas, has announced its fiscal 2014 third quarter and year to date results for the three and nine-month periods ending December 31, 2013 and the filing of its Quarterly Report on Form 10-Q. 

Anthony C. Schnur, Lucas Energy's Chief Executive Officer, stated, "Over the course of the past twelve months, our management team has successfully executed on our near-term objectives of repositioning the Company to a stronger financial and operational state.

"Initiatives to lower overall costs have successfully resulted in substantive decreases in both operating and general and administrative (G&A) expenses over the past nine months.  Year-to-date, our respective lease operating expenses (LOE) and G&A were 44% and 39% lower, respectively, than the same nine-month period last fiscal year.  December 2013 produced the lowest basic LOE and G&A monthly results Lucas has delivered in over thirty six months.

"In the transition from fixing a company to building one, we have examined the state of our industry, the various opportunities in our sector and the Company's specific prospects for future growth.  Companies with more scale in our specific geology can spread fixed operating expenses over a larger base of production and access more favorable financing terms – ultimately resulting in higher per share valuations," concluded Mr. Schnur.

The Company has engaged an investment banking firm and is actively reviewing a number of opportunities to accelerate development of its five million barrels of proved Eagle Ford and other oil reserves.  These potential opportunities include, but are not limited to, strategic partnership(s), asset or corporate acquisitions, and/or merger opportunities.  To date, we have not entered into any pending or definitive transactions.

Fiscal 2014 Third Quarter Results

For the fiscal 2014 third quarter, Lucas reported a net loss of $1.1 million, or ($0.04) per diluted share compared to a net loss of $2.7 million or ($0.10) per diluted share for the fiscal 2013 third quarter, or an improvement of $1.6 million for the period.  

Net operating revenues in the fiscal 2014 third quarter were $1.4 million, of which all were derived from crude oil sales, down from the $1.9 million net operating revenues in the same period last year and $1.2 million in the 2014 fiscal second quarter.  The decline in revenues during the quarter was largely due to the lost revenues from producing wells sold in the Baker Deforest unit and certain properties conveyed to Nordic Oil in the fourth quarter of fiscal 2013.  The impact of these events reduced our revenues by about $0.5 million, or approximately 29%, during the fiscal 2014 third quarter compared to the fiscal 2013 third quarter, and lower commodity prices impacted our revenues by another $154,000 during that period.

Overall lease operating expenses (LOE) in the fiscal 2014 third quarter fell 45% from the fiscal 2013 third quarter to $0.6 million primarily as a result of a 53% decrease in direct operating expenses related to continued cost cutting initiatives and improved operating efficiencies.  Sequentially, LOE dropped 23% from the fiscal 2014 second quarter LOE of $0.7 million.  G&A expenses of just under $1.0 million for the quarter were 59% less than G&A expenses of $2.3 million in the third quarter of last year and 18% lower than the fiscal 2014 second quarter G&A of $1.2 million

Average production during the fiscal 2014 third quarter was 158 net barrels of oil per day (BOPD), all of which was crude oil sales, compared to 131 net BOPD in the fiscal second quarter of 2014.  Production from the Austin Chalk well cleanout program contributed to the increase, but was partially offset by non-marketed oil production that remained in inventory and was not sold due to temporary infrastructure constraints. 

Fiscal 2014 Year-to-Date Results

Operating revenues in the first nine months fiscal 2014 were $4.1 million, of which all were derived from crude oil sales, down from the $6.4 million net operating revenues in the same period last year.  The decline in revenues year to date was largely due to the lost revenues from producing wells sold or conveyed in the fourth quarter of fiscal 2013.  The impact of these asset sales reduced our revenues by about $2.3 million, or approximately 36%, during the fiscal 2014 nine-month period, and lower commodity prices impacted our revenues by another $40,000.

Year-to-date 2014 LOE fell 44% from the same nine-month period last year.  G&A expenses during the first nine months of fiscal 2014 of $3.2 million were 39% lower than the $5.2 million G&A expenses during the first nine months of fiscal 2013.  Average production year-to-date during the fiscal 2014 third quarter was 150 net BOPD, all of which was crude oil sales.  Average production during the first nine months of fiscal 2013 was 243 net BOPD, which included production that has since been assigned or sold with the Nordic and Baker Deforest transactions. 

Appointment of Anthony C. Schnur to Board of Directors

The Company also announced today that, effective February 14, 2014, the Lucas Board of Directors increased the number of members of the Board of Directors from five to six members and appointed Anthony C. Schnur, the President, Chief Executive Officer, Interim Chief Financial Officer, Interim Treasurer and Interim Secretary of the Company as a member of the Board of Directors.  Mr. Schnur joined the Company as the Chief Financial Officer on November 1, 2012 before replacing the outgoing CEO in December 2012.  The Board of Directors believes that Mr. Schnur's extensive experience in the oil and gas industry, as well as his knowledge of the Company's operations, makes Mr. Schnur a valued addition to the Board of Directors. 




December 31

March 31,





Current Assets


$    1,450,756

$      450,691

Cash - Restricted



Accounts Receivable






Other Current Assets



Total Current Assets



Property and Equipment

Oil and Gas Properties (Full Cost Method)



Other Property and Equipment



Total Property and Equipment



Accumulated Depletion, Depreciation and Amortization



      Total Property and Equipment, Net



Other Assets



Total Assets

$   42,005,182

$   37,743,287


Current Liabilities

Accounts Payable

$    2,609,729

$    3,696,848

Common Stock Payable



Accrued Expenses



Advances From Working Interest Owners



Asset Retirement Obligation, current



Notes Payable



Total Current Liabilities



Asset Retirement Obligation



Long-term Notes Payable



Commitments and Contingencies (see Note 10)

Stockholders' Equity

Preferred Stock Series A, 2,000 Shares Authorized of

$0.001 Par, 2,000 Shares Issued and Outstanding       



Common Stock, 100,000,000 Shares Authorized of $0.001 Par,

30,002,874 Shares Issued and 29,965,974 Outstanding Shares

at December 31, 2013 and 26,751,407 Issued and 26,714,507

Outstanding Shares at March 31, 2013, respectively



Additional Paid in Capital



Accumulated Deficit



Common Stock Held in Treasury, 36,900 Shares, at Cost



        Total Stockholders' Equity



Total Liabilities and Stockholders' Equity

$   42,005,182

$   37,743,287





Three Months Ended

Nine Months Ended

December 31,

December 31,





Operating Revenues

Crude Oil

$  1,360,131

$  1,898,863

$  4,070,060

$  6,314,279

Natural Gas





     Total Revenues

$  1,360,131

$  1,927,895

$  4,070,060

$  6,378,509

Operating Expenses

 Lease Operating Expenses





 Severance and Property Taxes





 Depreciation, Depletion, 

    Amortization, and Accretion





 General and Administrative





     Total Expenses





Operating Loss

$  (816,374)

$ (2,399,216)

$ (2,799,380)

$ (5,152,265)

Other Expense (Income)

Interest Expense





Other Expense (Income), Net





     Total Other Expenses





Net Loss

$ (1,130,934)

$ (2,747,266)

$ (3,634,231)

$ (6,175,957)

Net Loss Per Share

Basic and Diluted

$      (0.04)

$      (0.10)

$      (0.13)

$      (0.25)

Weighted Average Shares Outstanding

Basic and Diluted





Please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2013, filed at www.sec.gov for complete financial statements, footnotes and results of operations including management's discussion and analysis of financial condition and results of operations.

About Lucas Energy, Inc.

Lucas Energy is an asset-rich, independent oil and gas company developing its acreage positions in the Eagle Ford, Austin Chalk, Buda and Glen Rose resource plays in central Texas.  Based in Houston, Texas, Lucas Energy's management team is committed to creating shareholder value through developing its asset base, improving operating efficiencies, and building a strong balance sheet.

For more information, please visit the updated 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.  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 risk 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 in 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 at http://www.sec.gov.


Carol Coale / Ken Dennard

Dennard  Lascar Associates, LLC

(713) 529-6600

SOURCE Lucas Energy, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.