HOUSTON, Nov. 23, 2011 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company" or "Lucas"), today announced the closing of its previously reported purchase and sale agreement with Nordic Oil USA 1, LP ("Nordic 1"), whereby the Company purchased all of Nordic 1's right, title and interest in certain oil, gas, and mineral leases located in Wilson, Gonzales and Karnes Counties, Texas, effective July 1, 2011. The property interests acquired represent all of Nordic 1's interests in the LEI 2009 II and III Capital Programs.
The Company paid $22 million to Nordic 1 in the form of a non-recourse, senior secured promissory note in connection with the acquisition, the payment of which was secured only by the properties acquired. The note is due one year from the official closing date (November 18, 2012), bears interest at 6% per annum, and allows early repayments without penalty.
William A. Sawyer, President and Chief Executive Officer of the Company said, "We are very pleased with the acquisition of Nordic 1's interests which provides Lucas with an increase in revenues, proved reserves, and Eagle Ford acreage."
For more information on this and other activities of the Company, visit the Lucas Energy web site at www.lucasenergy.com.
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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.