Lucas Energy, Inc. reported the results of an independent study of the Company's oil and gas reserves performed by Forrest A. Garb and Associates, Inc., an independent licensed petroleum engineering firm based in Dallas.
The report estimates the undiscounted future net revenue (FNR) from these reserves at $92,674,580, or a discounted PV-10 of $54,555,200, which is commonly known as the SEC PV-10 figure. This equates to $1.34 per share in discounted (PV-10) Proved Reserves.
The reserve report, which is based on interests owned by Lucas Energy, Inc. in certain oil and gas properties located in Gonzales, Baylor, Karnes, and Wilson counties, Texas.
The total net reserves are 1,506,004 barrels of crude oil and 36.39 MMcf of natural gas.
The report did not include reserves attributed to the new wells drilled as part of the 2008 drilling program, or new properties acquired since April 1, 2007. The reserve report did not take into account any behind pipe, probable, or possible reserves that Lucas Energy may hold.
James J. Cerna, Chief Executive Officer of Lucas Energy, stated, ``This gives our shareholders a better view of the Company's current assets and future net revenues. We will continue to build out our production and reserves through suitable acquisitions and drilling activities, while maintaining a low operating cost structure.''
William A. Sawyer, Chief Operations Officer of Lucas Energy, said, ``We are very pleased with this new independent report. Our acquisition of 1,000+ acres, 8 new wells, and new laterals drilled over the past few months, not included in the report, will surely add additional reserves to this calculation.''
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