The shares
of Lucas Energy, Inc.(NYSE:LEI) extended its gain on Tuesday and rose another
2% to $1.69 in early hours after gaining over 10% in the past one week.
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Lucas
Energy, Inc. today made it public that the company has performed an internal
review for the prospects of its Eagle Ford oil and gas. The results of the review,
which was conducted in the assistance of an independent petroleum engineering
firm, is that the total potential (proved, probable, and possible reserves) for
the Eagle Ford properties exceed the 3.7 million proven bbls (barrels) of oil.
The result of the review was determined by the Company's independent petroleum
engineers. The company however holds that the total potential oil, net to
Lucas, may be closer to 14.5 million bbls of oil indicating a PV10 present
value of more than $275 million for the total potential for the Eagle Ford
properties. However the prospective
quantity of oil and the approximate net value current value do not indicate of
fair market value of the properties.
Lucas
Energy, Inc. which acquires underdeveloped oil and gas properties and restores
production to the properties, and looks for underlying value, may leverage
these numeric figures to calculate offers by potential buyers and also to
determine potential asset value in the future. It may further use these numbers
to evaluate whether to develop properties or sell them at the market.
How Should Investors
LEI After Recent Rally, Ger Free report
William
A. Sawyer, President and Chief Executive Officer of the Company said,
"Lucas is steadfast in moving its Eagle Ford sale forward. It is still our
belief that the cash value of the properties is more beneficial to the Company
and to overall shareholder value, than the undeveloped potential of the
properties, whether proven or not."
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