HOUSTON, Oct. 7, 2011 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company" or "Lucas"), today responded to inquiries regarding the recent stock price activity. William A. Sawyer, President and Chief Executive Officer of the Company said, "Management of the Company believes the Company's fundamentals are strong and does not understand why the Company's stock price fluctuated so low, and then rebounded suddenly." As of the latest filing on June 30, 2011, the book value of the Company's assets was $1.23 per share. Within the past few days, the stock traded as low as $1.04 and as high as $1.80 per share, closing today at $1.49 per share.
Last November 2010, the Company published an evaluation of its potential (proved and probable reserves) indicating a potential net asset value of $86 million. Lucas has, more recently, published a review of the Marathon transaction analysis indicating that the asset value of the Company's Eagle Ford properties could be as much as $94 million, significantly higher than the market cap of $29 million.
Mr. Sawyer said, "I am hard pressed to understand the current market prices that place our market cap so low. This has not happened since early 2009 when the overall market was bad and we were not known to the public." For more information on this and other activities of the Company, see the Lucas Energy web site www.lucasenergy.com.
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Company Website: www.lucasenergy.com
Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Act") and Section 21E of the Securities Act of 1934, as amended (the "Exchange Act"). In particular, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements and are subject to the safe harbor created by these Acts. Any statements made in this news release about an action, projection, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration and development of oil and gas. These risks include, but are not limited to, completion risk, dry hole risk, price volatility, reserve estimation risk, regulatory risk, potential inability to secure oilfield service risk as well as general economic risks and uncertainties, as disclosed in the Company's SEC filings including its Form 10-K and Form 10-Q's. 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.