Lucas Energy Inc. and Nordic Oil USA 1, LLP have entered into a settlement and release agreement to terminate their $22 million purchase and sale agreement made Oct. 13, 2011.
The company defaulted in the repayment of the $22 million note payable to Nordic that was due in November 2012.
"This amicable settlement with Nordic resolves the single largest legacy issue the board faced last December," commented Lucas Energy Chairman of the Board of Directors Ryan Morris, in a released statement.
Lucas Energy will pay $1.1 million and transfer several assets after it failed to repay a promissory note on a deal with Nordic Oil that included a set of properties in Gonzales, Karnes and Wilson counties in Texas. The transferred assets to Nordic represent less than 18 percent of Lucas' total proved reserves and less than 5 percent of its current production, Reuters reported.
In December 2012, the Houston-based company underwent board and management changes after Nordic Oil filed the lawsuit over non-payment on the deal earlier that month. William A. Sawyer, former co-founder, CEO and director of Lucas Energy resigned from his positions in December 2012 to "pursue other endeavors", the company stated. Lucas then appointed Anthony C. Schnur, an oil and gas finance veteran, as CEO of the company.
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