Boston, MA 08/26/2014 (wallstreetpr) – According to reports, Lucas Energy, Inc. (NYSEMKT:LEI) has signed a new deal with Oak Valley Resources LLC to develop the Karnes County acreage project of LEI in the Eagle Ford shale formation of Texas. Last few months have been very tough for the company. It is financially struggling and trying its best to avoid de-listing on the New York Stock Exchange. After a lot of efforts, it received an extension from NYSC till October.
What’s in the new deal:
According to a new deal between Lucas Energy, Inc. (NYSEMKT:LEI) and Oak Valley Resources LLC, the former will get $444,000 in exchange for a 50% working interest of 400 acres land. The entire drilling process will be managed by Oak Valley while both the company will share the profits and drilling & completion costs in 50:50 ratios. The management of LEI expects to spud the first well by December 2014. Both the companies are expected to drill a minimum of four wells on the land.
According to Anthony Schnur, Chief Executive Officer of Lucas Energy, Inc. (NYSEMKT:LEI), this deal is that kind of step that he had been looking to take for a very long time. It would be an excellent step to push the company on a profit making way once again. The entire management team of LEI looks very determined and optimistic that this joint venture will turn out to be one of the best steps taken by the company so far. Schnur also clarified that LEI had not been thinking to sell any of its assets to remain listed in the NYSE. He said that this venture could be one of the stepping stone towards becoming profit generating company once again. The board of directors of Lucas Energy, Inc. (NYSEMKT:LEI) decided to hand over the CEO’s position to Schnur in December 2012 to turn things around which he had been trying to do over the last two years.
