Lucas enters into convertible note purchase agreement and short-term note financing

Lucas Energy Inc. (NYSE MKT: LEI) has entered into a convertible note purchase agreement, which provides for up to $600,000 of funding, of which $450,000 has been received to date, and a short-term promissory note with a third party relating to a loan of $250,000, each to fund near-term financial obligations. 

These agreements replace the previous non-revolving line of credit agreement that was entered into with Silver Star Oil Co. in August 2015. Silver Star has had difficulty providing the required funding per the terms of the line of credit, which provides Lucas the right to request up to $2.4 million in convertible promissory notes over a 12-month period. Lucas has sold $1 million in such convertible promissory notes to Silver Star. In an effort to raise funding for ongoing expenses and as a replacement for the amounts previously sought from Silver Star, Lucas entered into the convertible note purchase agreement and short-term promissory note.

"We firmly believe that the current oil and gas market continues to offer acquisition opportunities, and we are pleased that thus far the investment community is willing to provide the funding so that we can work to capitalize on those opportunities," said Anthony C. Schnur, CEO of Lucas Energy. "We continue to move efficiently toward completing our acquisition of the Segundo Resources assets and seek to expand the company's asset base into more conventional plays and improve our returns to our shareholders." 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...