Lucas Energy announced that the previously reported letter of intent with Nordic Oil USA 2 LLLP ("Nordic 2") culminated in the execution of a Purchase and Sale Agreement with Nordic 2 on October 13, 2011. Pursuant to the agreement, Lucas agreed to sell Nordic 2 all of its interests, or a 7.56% working interest, in and to certain oil, gas and mineral leases located in McKinley County, New Mexico for $4 million in cash. Net proceeds to the Company after commission amounts to $3.6 million. The Company acquired the properties in January 2011 in a purchase transaction for $2.5 million, which included a deposit of $0.5 million.
Pursuant to the agreement, which has an effective date of February 1, 2011, Nordic 2 acquired all rights to the $0.5 million deposit, any overriding interests, mineral and royalty interests and other property interests that the Company had in the property, all rights to any wells on the property, all contractual rights associated with the property, all easements, permits, equipment and oil, gas and other hydrocarbons on the property, as well as all data which the Company had associated with the property.
William A. Sawyer, President and Chief Executive Officer of the Company said, "We are very pleased with the consummation of the New Mexico property sale. We plan to use the net proceeds of $3.6 million to further develop our Texas properties, especially in the Austin Chalk formation."
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