Lucas Energy (LEI) Shareholders Approve Segundo Transaction

August 24, 2016 7:03 AM EDT

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Lucas Energy, Inc. (NYSE: LEI) announced that at a separate special stockholder meeting today its shareholders voted to approve the Asset Purchase Agreement to acquire the working interests in certain oil and gas properties from Segundo Resources and various sellers. Also approved were the financial transactions in connection with the acquisition. Holders voted in favor of five proposals to issue approximately 13 million shares of common stock in addition to preferred stock and debt transactions in connection with the Segundo acquisition and other related matters. Shareholders also approved the ratification of the appointment of GBH CPAs, PC as Lucas' independent auditors for the fiscal year ending March 31, 2017. Additional information regarding the stockholders meeting and the items approved are described in greater detail in the Definitive Proxy Statement on Schedule 14A, filed by Lucas with the Securities and Exchange Commission on July 29, 2016, and the Current Report on Form 8-K filed concurrently with this press release.

"Obtaining shareholder approval for the purchase agreement and financial transactions was a critical step toward closing the pending acquisition of producing properties and undeveloped acreage in Texas and Oklahoma," said Anthony C. Schnur, Chief Executive Officer of Lucas Energy. "We view the Special Shareholder Meeting's approval as a sign of shareholder support for our strategy of expanding the Company's scale and strengthening its financial flexibility."

A required majority vote of over 50% of Lucas's outstanding shares was not achieved to approve the amendment to the Articles of Incorporation to change the Company's name to Camber Energy, Inc. This amendment will be re-submitted for shareholder vote, likely at the Annual Shareholder Meeting expected to be held in March of 2017.

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