Lucas Energy Signs Letter of Intent to Divest Its New Mexico Properties for US$4 Million
Lucas Energy, Inc. (NYSE: LEI) announced today the execution of a non-binding letter of intent to divest its oil and gas properties located in New Mexico to Nordic Oil USA 2 LLP ("Nordic 2").
The Company announced that in accordance with the terms of the letter of intent, Nordic 2 will pay Lucas US$4 million in cash for all of Lucas's leasehold interests (working interests) in the wells and leases located in McKinley County, New Mexico and associated improvements and equipment on the leases. The Company anticipates the total finders' fees and other expenses associated with the transaction will be approximately US$0.45 million.
"From time to time, we evaluate our properties in order to concentrate our capital on the ones that fit the current strategy of the Company and to divest those that may take us longer to maximize their value potential," commented Mr. William Sawyer, Chief Executive Officer of Lucas Energy, Inc., who continued, "Divestiture of our New Mexico properties will also generate additional funds which we plan to use for the development of our Texas properties."
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