Lucas Energy (LEI) to Sell Small Interest in Baker Deforest; Apoints Chairman, Amends Bylaws

December 21, 2012 8:51 AM EST
Lucas Energy, Inc. (AMEX: LEI) has completed the sale of a 0.77% net royalty interest in certain assets owned by the Company within the Baker Deforest Unit, located in Gonzales and Dewitt Counties, Texas, for $4 million.

On December 20, 2012, Ryan J. Morris was appointed as Chairman of the Board of Directors (J. Fred Hofheinz resigned as Chairman, but still remains on the Board as a Director).

Additionally, on December 20, 2012, the Company amended and restated its Bylaws, to among other things, make such Bylaws more stockholder friendly. The amendments include reducing the required ownership percentage of stockholders which is required to call a special meeting of stockholders to at least 10% of all shares entitled to vote at the proposed special meeting (down from 30%). The Company believes that these changes increase its shareholders' ability to participate in the direction of the Company, and further bring the Company's Bylaws in line with similarly sized companies.

A more detailed description of the asset sale and the changes affected by the amendments to the Bylaws can be found in the Company's Form 8-K filing, filed with the Securities and Exchange Commission on December 21, 2012.

The Company would also like to update the marketplace as to the current status of certain previously reported lawsuits and other proceedings affecting the Company.

Specifically, the Company is pleased to report that it has: negotiated a 60 day stay of the lawsuit filed by Seidler Oil & Gas, L.P., to allow for the discussion of a settlement between the parties; provided a proposal for settlement to Knight Capital Americas LLC (as successor in interest to Knight Capital America, L.P.), in an effort to settle the lawsuit previously filed by Knight against the Company; and that the Company is currently in the process of attempting to reopen settlement discussions with Nordic Oil USA I, LP ("Nordic"), in connection with the Company's previously announced default in the payment of the $22 million note payable to Nordic (due in November 2012) and Nordic's subsequent filing of a lawsuit against the Company.

Finally, while the Company appreciates all of its shareholders and their input, a significant number of shareholders, brokers and other parties have contacted the Company over the past several days, and while the Company is working to provide as much information as possible in more frequent communications, the Company is simply unable to timely respond due to its current focus on addressing operating and efficiency issues. The Company appreciates your understanding and patience.

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