Dallas, Texas 07/27/2015 (Financialstrend) – Lucas Energy, Inc. (NYSEMKT:LEI) was among the biggest gainers last week as the stock gained more than 51% in market value even as a wave of uncertainty continues to fill the air over its long-term prospects. The company has been trying to improve its financial position, efforts that have immensely been affected by the turmoil in the energy sector.
Cost Cutting Push
Lucas Energy, Inc. (NYSEMKT:LEI) has made significant progress in cutting costs, but a net loss of $5.1 million painted a different picture on the changes the company has been initiating. The loss represented a 9.4% increase from levels achieved last year same period. Revenue for the 2015 fiscal year came in at $3 million lower than the $5.22 million registered a year ago.
The company has also reaffirmed plans to continue lowering its lease operating, general and administrative expenses seen as a way of trying to offset the effects of significantly lower oil prices
A plunge in oil prices in the global market has been cited as the main reason for the sharp decline in revenue for the year. Lower than expected oil prices contributed approximately $1.2 million declines in revenue while lower production volumes could have accounted for another $1.2 million. Asset sales as well as lack of funding to complete drilling activities contributed to Lucas Energy, Inc. (NYSEMKT:LEI)’s 28% decline in production volumes.
Long Term Plans
Lucas Energy, Inc. (NYSEMKT:LEI) is currently looking for other financing opportunities as well as other alternatives needed to pursue drilling activities in the Karnes County and Texas wells. The company has been offloading some of its assets having already sold 139 net acres of oil and gas properties in Karnes County Texas and Oak Valley
Lucas Energy, Inc. (NYSEMKT:LEI)’s long-term prospects depend on the development of its oil reserves, especially in the Eagle Ford Shale. The company is also remaining open on combining with another entity or pursuing an acquisition that could guarantee further growth going forward. However, no binding agreements or transactions have been entered to date.