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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (40816)	12/27/2010 2:40:34 PM
From: E_K_S	Read Replies (1) \| Respond to of 78496

Hi Paul - How do you feel about their $6 million stock offering (2.5 million shares) @ $2.38/share? That's almost 19% dilution. I passed earlier this month on shares but it might be worth a shot at $2.00/share or less on any sell off. Re: Lucas Energy, Inc. (LEI) Lucas Energy Enters Into $6 Million Stock Offering finance.yahoo.com From the article:"...- Lucas Energy, Inc. (NYSE Amex:LEI), an independent oil and gas company, has executed agreements to raise almost $6 million from the sale of approximately 2.5 million units in a registered direct offering at a price of $2.38 per unit, based on the December 23, 2010 closing price. Investors included a select group of institutions and Hall Phoenix Inwood Ltd., an affiliate of Hall Phoenix Energy, LLC. Hall Phoenix Energy is a joint venture partner with Lucas in the Eagle Ford trend in South Texas...." ================================================================= Any opinion on the MHR purchase today? The market seems to like it as the stock is near all time highs (up 6% today). EKS

To: Paul Senior who wrote (40816)	1/25/2011 10:24:25 PM
From: E_K_S	Respond to of 78496

Hi Paul - This deal announced after the market close today. The Hospah field (located in New Mexico) seems like a perfect fit for LEI w/ additional financing to be obtained from JV partners. Oil and gas production from the Hospah Sandstones reservoirs since 1927 have yielded nearly 22 million barrels of oil and nearly 53 MCF of gas through 2005. Re: Lucas Energy, Inc. (LEI) Lucas Energy Enters Into Letter of Intent and Partially Funds Oil and Gas Acquisition of Up to $20.5 Million finance.yahoo.com From the article:"..."Strategically, this acquisition fits our business model of reworking old fields and plays to our core strengths," commented William A. Sawyer, president and CEO of Lucas Energy. "It also diversifies our asset base out of Texas." The acquisition covers six shallow producing units and more than 100 existing well bores drilled to the Hospah oil and Dakota gas formations in McKinley County, New Mexico. Production averaged approximately 100 barrels per day of light sweet crude during 2010. Management believes that daily production can be increased to 500 barrels of oil and 2 million cubic feet of gas in the first year at a capital cost under $9 million. The development plan includes deepening certain wells and using them to re-inject formation water into non-producing zones, putting existing wells back on production, and by removing carbon dioxide from the natural gas to bring it up to pipeline quality....". ======================================================= It will be interesting to see how the stock reacts to this news tomorrow. It's not in the Eagle Ford area (that you prefer) but management believes this can be a profitable venture which can be structured using JV partner's financing. $2 Million is a pretty big bet for this company (6.4% of their market Cap.). EKS