Lucas Energy, Inc. (NYSEMKT:LEI) shares are trading up huge this morning, after releasing quite an interesting tidbit of news. The significant news release is that they have announced that they have signed a purchase agreement to acquire working interests in producing properties and undeveloped acreage from 21 different parties. These land parcels include property in the liquids-rich Mid-Continent region, and in all the properties currently are producing over 1200 barrels of oil equivalent each day.
“Pursuant to the Purchase Agreement and the terms and conditions thereof, we agreed to acquire from the Sellers, working interests in producing properties and undeveloped acreage in Texas and Oklahoma, including varied interests in two largely contiguous acreage blocks in the liquids-rich Mid-Continent region of the United States, and related wells, leases, records, equipment and agreements associated therewith (collectively, the “Assets”),” Lucas Energy, Inc. (NYSEMKT:LEI) reported in a form 8-K filing.
After the closing of the transactions, the company plans to rebrand and change their name to “Camber Energy, Inc.”, but the closing won’t be complete until the first quarter of 2017.
“The completion of this transaction will raise the trajectory of opportunities for Lucas, not only as we increase our existing production base and future development opportunities, but also as we expand our reach into a key play in the Mid-continent and broaden our strategic horizons,” said Anthony C. Schnur, Lucas’s Chief Executive Officer. “We are extremely excited to have identified an acquisition that provides us with stable, long-lived reserves with substantial current production and ample drilling opportunities that are economic in a prolonged depressed commodity price environment. We are further encouraged by the planned upcoming additions to our board, especially the appointment of Richard N. Azar II as our Chairman. I have known Richard over the last three years, and I welcome his depth of knowledge and strategic sense to our Company.”
The stock is up 138.79% or $2.29 following the news, hitting $3.94 per share. About 181,986 shares traded hands or up 1616.53% from the average. LEI has risen 931.25% since May 28, 2015 and is currently uptrending. It has outperformed the S&P500 by 933.37%.
Lucas Energy, Inc. is an independent gas and oil company. The company has a market cap of $5.77 million. The Firm is engaged in the acquisition and development of natural gas and crude oil from various known productive geological formations, including the Austin Chalk, Eagle Ford and Buda formations, primarily in Gonzales, Wilson and Karnes Counties south of the city of San Antonio; and the Eaglebine, Buda, and Glen Rose formations in Leon and Madison Counties north of the city of Houston, Texas. It currently has negative earnings. The Firm has leasehold interests (working interests) in approximately 17,628 gross acres, or 13,314 net acres.