Lucas Energy Jumps 10% on Eagle Ford Potential
Shares of Lucas Energy (NYSE: LEI) are seeing increased strength during Monday's trading session after the company announced some positive news out of it's Eagle Ford assets.
According to an internal review of its Eagle Ford oil and gas potential with the assistance of an independent petroleum engineering firm, the company has a total potential (proved, probable, and possible reserves) for the Eagle Ford properties exceed the 3.7 million proven bbls (barrels) of oil. This was determined by the independent petroleum engineers.
Lucas believes that the total potential oil, net to Lucas, may be closer to 14.5 million bbls of oil. This would indicate a PV10 present value of more than $275 million for the total potential for the Eagle Ford properties.
Potential quantities of oil and the estimate of net present value are not an indication of fair market value of the properties. The Company may use these numbers to evaluate offers by potential buyers, determine potential asset value in the future, or to assist in the decision as to whether to develop properties or sell them at the market.
Monday, shares of Lucas Energy were trading up over 9 percent, at about $1.67 per share.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.