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.
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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."