HOUSTON, April 8, 2013 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE MKT:LEI) ("Lucas Energy" or the "Company"), an independent oil and gas company with main operations in Texas, today announced that it has completed a $2.75 million bridge loan with an investor group led by two Lucas Energy Directors to fund its current working capital needs. The Company has conducted fundraising efforts recently in anticipation of providing capital for the payments required in connection with the legal settlements previously announced. The Company received a number of term sheets of varying amounts and it became evident that the terms and conditions proposed to the Company were based more on the Company's recent history of net losses instead of the future value and operating plans of the Company. As such, the Company decided to accept the more favorable terms of the bridge loan proposed by the investor group led by two of its Directors.
The bridge loan bears interest at 14% per annum, is due and payable in six months (extendable up to a year under certain circumstances) and contains no pre-payment penalty. As consideration for making the loans, we agreed to grant the lenders five year warrants to purchase an aggregate of 275,000 shares of our common stock at an exercise price of $1.50 per share. We also paid the lenders an aggregate of $55,000 as a commitment fee in connection with the loans.
The funds afford the Company the ability to make the required payments under its previously announced settlement agreements and will provide additional operating funds for the Company's current plan of operations.
Anthony Schnur, CEO commented, "I am very pleased to announce the closing of our bridge loan which will enable us to meet our financial requirements and to exploit opportunities we see to enhance our near-term operating performance. I am grateful to our Director-led investor group for the confidence they have shown in our future and for funding us on far more favorable terms than any alternatives we have seen."
About Lucas Energy, Inc.
Lucas Energy, Inc., a Nevada corporation, is an independent oil and gas company that seeks to create value through the opportunistic acquisition, development and management of underdeveloped oil and gas properties. Lucas's current oil and gas interests are principally in the Austin Chalk, Eagle Ford shale, Eaglebine and Buda & Glenrose formations in Texas.
For more information on this and other activities of the Company, please visit the Lucas Energy web site at www.lucasenergy.com.
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Forward-Looking Statements
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.