Lucas Energy, Inc. reported financial results for the third fiscal quarter and nine months for the period ended December 31, 2007. Share count and all per share information has been adjusted to reflect the 1-for-4 reverse stock split which was effected on February 4, 2008, subsequent to the end of the third quarter.
Total revenues for the three months ended December 31, 2007 were up 104.6% to $811,023 compared to $396,367 in the year-ago period. For the nine months ended December 31, 2007, total revenues were up 85% to $1,747,510 compared to $944,788 in the year ago period. Oil and gas revenues increased during the period due to additional wells put on line through the ongoing acquisition and rework program and from the addition of new laterals drilled during the quarter. The company produced 9,093 bbls of oil and 584 mcf natural gas net to the company in the quarter, compared to 7,045 bbls and nil in the prior year's period, and realized average prices of $88.89 per barrel and $5.08 per cubic square foot of gas, compared to $56.27 per barrel last year (there were no gas revenues in last year's same period).
James J. Cerna, Chief Executive Officer of Lucas Energy, stated, ``Our third fiscal quarter was productive from both an operational and financial perspective, and we are pleased to be able to announce our eleventh consecutive quarter of profitability and cash generation. Our drilling program, focused on substantially increasing the production from our portfolio of properties, has proven to be highly successful and continues to deliver cash flow for our investors. Three out of 10 of the wells in our program are currently producing and we are getting ready to begin drilling a fourth well. Our focus remains on operating efficiently and profitably, and it is our objective to continue to acquire assets with proven reserves to increase our cash flow, while simultaneously executing a low risk drilling strategy.''
For the three months ended December 31, 2007, total operating expenses were $589,879 compared to total operating expenses of $108,854 in the prior year's period. For the nine months ended December 31, 2007, total operating expenses were $1,357,103 compared to total operating expenses of $423,136 in the prior year's period. Operating income was $221,144, for the quarter compared to operating income of $287,513, in last year's period. Operating income for the nine-month period was $390,406 compared to operating income of $521,652 in last year's period. The increases in SG&A and LOE were primarily driven by increased upfront costs for drilling operations, increased costs for field engineers, information technology services, and administrative personnel as well as increased public company costs in this year's period.
Cash flow, as measured by EBITDA* for the third quarter, increased 7% to $364,023, or $0.04 per basic and diluted share (based on 10,211,156 basic and diluted shares) from $340,363, or $0.05 per basic and diluted share (based on 6,885,250 basic and diluted shares). The increase was driven by the higher revenue realized in the quarter due to higher commodity prices and increased production in the quarter.
Net income for the third quarter, ended December 31, 2007 was $179,906, up 8.1% from net income of $166,467 for the three months ended December 31, 2006. The increase in income for the period is attributable to the increase in revenues. For the nine months ended December 31, 2007, net income was $267,168 compared to $349,938 for the nine months ended December 31, 2006. Basic and diluted earnings per share for the three months ended December 31, 2007 were $0.01 compared to basic and diluted earnings per share of $0.02 for the three months ended December 31, 2006. Basic and diluted earnings per share for the nine months ended December 31, 2007 were $0.03 compared to basic and diluted earnings per share of $0.05 for the nine months ended December 31, 2006. The decrease in net income for the nine months was attributed to higher professional fees, headcount and public company costs.
Mr. Cerna concluded, "Beyond the success we've had in our exploration and drilling initiatives, we are also excited about our upcoming move to the American Stock Exchange. We expect this move will provide greater awareness and visibility for the Company to both institutional and retail investors and will provide broader access to, and lower cost of, capital if needed, all of which results from the greater depth of market the AMEX has to offer.''
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