By a News Reporter-Staff News Editor at Energy Weekly News -- Lucas Energy, Inc. (NYSE MKT: LEI) ("Lucas" or the "Company"), an independent oil and gas company with its operations in Texas, has announced its fiscal 2014 third quarter and year to date results for the three and nine-month periods ending December 31, 2013 and the filing of its Quarterly Report on Form 10-Q.
Anthony C. Schnur, Lucas Energy's Chief Executive Officer, stated, "Over the course of the past twelve months, our management team has successfully executed on our near-term objectives of repositioning the Company to a stronger financial and operational state.
"Initiatives to lower overall costs have successfully resulted in substantive decreases in both operating and general and administrative (G&A) expenses over the past nine months. Year-to-date, our respective lease operating expenses (LOE) and G&A were 44% and 39% lower, respectively, than the same nine-month period last fiscal year. December 2013 produced the lowest basic LOE and G&A monthly results Lucas has delivered in over thirty six months.
"In the transition from fixing a company to building one, we have examined the state of our industry, the various opportunities in our sector and the Company's specific prospects for future growth. Companies with more scale in our specific geology can spread fixed operating expenses over a larger base of production and access more favorable financing terms - ultimately resulting in higher per share valuations," concluded Mr. Schnur.
The Company has engaged an investment banking firm and is actively reviewing a number of opportunities to accelerate development of its five million barrels of proved Eagle Ford and other oil reserves. These potential opportunities include, but are not limited to, strategic partnership(s), asset or corporate acquisitions, and/or merger opportunities. To date, we have not entered into any pending or definitive transactions.
Fiscal 2014 Third Quarter Results
For the fiscal 2014 third quarter, Lucas reported a net loss of $1.1 million, or ($0.04) per diluted share compared to a net loss of $2.7 million or ($0.10) per diluted share for the fiscal 2013 third quarter, or an improvement of $1.6 million for the period.
Net operating revenues in the fiscal 2014 third quarter were $1.4 million, of which all were derived from crude oil sales, down from the $1.9 million net operating revenues in the same period last year and $1.2 million in the 2014 fiscal second quarter. The decline in revenues during the quarter was largely due to the lost revenues from producing wells sold in the Baker Deforest unit and certain properties conveyed to Nordic Oil in the fourth quarter of fiscal 2013. The impact of these events reduced our revenues by about $0.5 million, or approximately 29%, during the fiscal 2014 third quarter compared to the fiscal 2013 third quarter, and lower commodity prices impacted our revenues by another $154,000 during that period.
Overall lease operating expenses (LOE) in the fiscal 2014 third quarter fell 45% from the fiscal 2013 third quarter to $0.6 million primarily as a result of a 53% decrease in direct operating expenses related to continued cost cutting initiatives and improved operating efficiencies. Sequentially, LOE dropped 23% from the fiscal 2014 second quarter LOE of $0.7 million. G&A expenses of just under $1.0 million for the quarter were 59% less than G&A expenses of $2.3 million in the third quarter of last year and 18% lower than the fiscal 2014 second quarter G&A of $1.2 million.
Average production during the fiscal 2014 third quarter was 158 net barrels of oil per day (BOPD), all of which was crude oil sales, compared to 131 net BOPD in the fiscal second quarter of 2014. Production from the Austin Chalk well cleanout program contributed to the increase, but was partially offset by non-marketed oil production that remained in inventory and was not sold due to temporary infrastructure constraints.
Fiscal 2014 Year-to-Date Results
Operating revenues in the first nine months fiscal 2014 were $4.1 million, of which all were derived from crude oil sales, down from the $6.4 million net operating revenues in the same period last year. The decline in revenues year to date was largely due to the lost revenues from producing wells sold or conveyed in the fourth quarter of fiscal 2013. The impact of these asset sales reduced our revenues by about $2.3 million, or approximately 36%, during the fiscal 2014 nine-month period, and lower commodity prices impacted our revenues by another $40,000.
Year-to-date 2014 LOE fell 44% from the same nine-month period last year. G&A expenses during the first nine months of fiscal 2014 of $3.2 million were 39% lower than the $5.2 million G&A expenses during the first nine months of fiscal 2013. Average production year-to-date during the fiscal 2014 third quarter was 150 net BOPD, all of which was crude oil sales. Average production during the first nine months of fiscal 2013 was 243 net BOPD, which included production that has since been assigned or sold with the Nordic and Baker Deforest transactions.
Appointment of Anthony C. Schnur to Board of Directors
The Company also announced that, effective February 14, 2014, the Lucas Board of Directors increased the number of members of the Board of Directors from five to six members and appointed Anthony C. Schnur, the President, Chief Executive Officer, Interim Chief Financial Officer, Interim Treasurer and Interim Secretary of the Company as a member of the Board of Directors. Mr. Schnur joined the Company as the Chief Financial Officer on November 1, 2012 before replacing the outgoing CEO in December 2012. The Board of Directors believes that Mr. Schnur's extensive experience in the oil and gas industry, as well as his knowledge of the Company's operations, makes Mr. Schnur a valued addition to the Board of Directors.
Keywords for this news article include: Oil & Gas, Oil And Gas, Lucas Energy Inc..
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC