Lucas Energy Inc. (NYSE MKT: LEI) reports that the NYSE MKT (the Exchange) notified the company that it has been granted an extension until Jan. 31, 2015, to regain compliance with the NYSE MKT continued listing standards.
Lucas Energy had previously presented its plan of compliance on March 28 in a letter to the Exchange, in response to a notice that the company was below certain of the NYSE MKT continued listing standards, as set forth in Section 1003(a)(iii) of the NYSE MKT Company Guide, due to its financial condition. By virtue of the conditions described in the March letter and subsequent letters in July and November, the company was granted until Dec. 4 to regain compliance with the NYSE MKT continued listing standards, provided that certain conditions are met by the company (as described by the company in its plan, as amended).
Based on information provided by the company through Dec. 4, the Exchange has determined that Lucas Energy has made a reasonable demonstration of its ability to regain compliance by the end of the revised period which has been extended to Jan. 31, 2015.
At the end of the revised plan period, Lucas Energy must be in compliance with the Exchange's continued listing standards. Failure to demonstrate adequate progress within that timeframe will result in the Exchange initiating delisting proceedings pursuant to Section 1009 of the Company Guide.
"We were scheduled to close on a corporate financing transaction on or before Dec. 3, but the severe decline in crude oil prices has delayed that process and, therefore, has delayed drilling of our Karnes County Eagle Ford shale acreage," said Anthony C. Schnur, CEO of Lucas Energy. "We have been advised by the operator that, at present, they still plan to drill the acreage, pending our ability to participate and fund our share, and, accordingly, we will continue to pursue alternatives to secure funding through corporate or project financing arrangements or other actions, but the timing will likely depend on the direction and stability of oil prices."