Lucas Energy, Inc., a U.S. based independent oil and gas company, announced that its Board of Directors has approved the repurchase of up to 1 million shares of its Common stock over the next 18 months. The Company is authorized to repurchase shares in open market transactions. These purchases will be subject to availability, regulatory constraints and general economic conditions. Goldman Sachs & Co., New York, will be handling the trading and the 10b-18 administration.
The timing and amount of any repurchases will be determined by Lucas management based on its evaluation of market conditions, the relative attractiveness of other deployment activities, regulatory considerations and other factors. Any open market stock repurchase activities will be conducted in compliance with the safe harbor provisions of Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company may otherwise be prohibited from doing so under insider trading laws. This program may be suspended or discontinued at any time.
Mr. James Cerna, CEO of Lucas Energy said, "We have made the decision to allocate a portion of our free cash flow to opportunistic purchases of our common stock from time to time under this authorization. Given the attractive fundamentals in our industry, our solid operating and financial performance, and our outlook for sustainable growth and cash flow generation, the Board feels this is an excellent opportunity to reinvest in the company and reduce the total shares outstanding. Trading at roughly one third our last reported Net Asset Value as of March 31, 2008, of $90 million, we believe that our company's current share value remains largely unrecognized."
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