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Lucas Energy Reports $6.8MM Loss

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Lucas Energy Inc. has reported its fourth quarter and fiscal year-end results for the period ending March 31, 2013 and the filing of its Form 10-K Annual Report on June 28, 2013.

Anthony C. Schnur, Chief Executive Officer of the Company, commented: "Earlier, in a press release filed April 2, 2013, we stated our goals to:

1) favorably resolve legacy legal matters;

2) increase the efficiency of our field operations and reduce corporate overhead;

3) move operations to a cash-flow positive position;

4) develop additional low-risk opportunities to increase production; and

5) solidify our capital position and long term development strategy.

"In the six months following the change in management last December, we have accomplished almost all of these objectives and the fourth quarter results are a reflection of this effort.

"We are pleased with our progress so far, and next on our list is to further develop our access to capital and execute our long-term strategy to pursue low-risk opportunities in an effort to increase production and develop our existing oil and gas properties.  Our ultimate goal is maximizing shareholder value by increasing production and growing our reserves.  As we expand our asset base and improve our operating efficiencies, we plan to increase profit margins and our cash flows."

Fiscal 2013 Fourth Quarter Results

For the fiscal 2013 fourth quarter, Lucas reported a net loss of $0.6 million, or ($0.02) loss per diluted share, a 78% improvement over the net loss of $2.7 million, or ($0.10) loss per diluted share, in the fiscal 2013 third quarter and a 75% improvement over the $2.5 million loss or ($0.13) loss per diluted share in same quarter last year.  Net operating revenues in the fiscal 2013 fourth quarter were $1.9 million, of which all were derived from crude oil sales, virtually flat with fiscal 2013 third quarter revenues and up 7% over the fiscal 2012 fourth quarter.

Overall expenses in the fiscal fourth quarter fell dramatically from the third quarter as a result of cost cutting initiatives, debt reduction, and improved operating efficiencies.  General and administrative (G&A) expenses of $0.9 million in the fiscal 2013 fourth quarter were 63% less than G&A expense in the third quarter of $2.3 million and 52% lower than in the fiscal 2012 fourth quarter. 

However, the decline in G&A expenses was exaggerated by the inclusion of significant one-time severance expenses in the third quarter of fiscal 2013.  Lease operating expense decreased by 32% to $0.6 million from third quarter expenses and by 52% from last year's fourth quarter lease operating expenses.  Average production during the 2013 fourth quarter was 196 net barrels of oil equivalent per day (boe/d) compared to 221 net boe/d in the third quarter, which included production from the Baker Deforest unit that was sold in December 2012, and 192 net boe/d in the 2012 fourth quarter.

Fiscal 2013 Annual Results

For the twelve months ending March 31, 2013, Lucas reported a fiscal year net loss of $6.8 million, or ($0.27) per diluted share, which was an 11% improvement over the $7.6 million loss, or a ($0.41) loss per share, for the same twelve-month period last year. 

Net operating revenues increased by 57% to $8.3 million compared to $5.3 million the same period last year. G&A expense of $6.1 million in fiscal 2013 rose slightly by 8% when compared to fiscal 2012, reflecting the higher severance costs in the 2013 third quarter.  Lease operating expense decreased by 13% to $3.8 million from $4.3 million in fiscal 2012.  Average production increased 51% to 235 net boe/d compared to the same period last year of 156 net boe/d.