Lucas Energy Settles Lawsuit
Lucas Energy Inc., a Houston-based oil and gas company, has settled a lawsuit filed by Seidler Oil & Gas LP.
Under the terms of the January 28, 2013 settlement agreement, Lucas agreed to release certain revenues that had been suspended to Seidler, to participate in a joint operating agreement with the company, and to return approximately $1.38 million to Seidler and other investors. The money is associated with the Hagen Unit 5-H well, which was not drilled. Lucas also agreed to join Seidler in defending against any legal action taken against either company in connection with the well.
Lucas Energy further agreed that if executed releases are received from certain investors, the company will reimburse Seidler $85,000 and release it from claims connected to the lawsuit. Seidler, based in Alvarado, Texas, agreed to dismiss its lawsuit against Lucas. The lawsuit was filed in the District Court for the 25th Judicial District of Texas, which is located in Gonzales County, on August 13, 2012. On December 21 of last year, Lucas negotiated a stay of the lawsuit to discuss a settlement.
Lucas Energy is an independent oil and gas company that attempts to restore production to underdeveloped properties that it acquires. The company claims to have taken action to reduce its staff by about 40 percent, hoping to cut its expenses by about the same amount. The staff cuts will include office and operations employees. According to SEC filings, the company had a total of 19 employees in September of 2012.
Lucas has said that it is pursuing alternative strategies for delivering value to shareholders and will seek to generate a positive cash flow. The company said it has already reduced expenses by $1.7 million and will reduce by another $500,000 during 2013.
William Sawyer, the co-founder and CEO of Lucas Energy, resigned in December. Anthony Schnur, who had been hired as CFO in November, replaced Sawyer.
Lucas Energy is active in the Eagle Ford, Austin Chalk, Eaglebine and Buda trends. The company is traded publicly on the New York Stock Exchange. During fiscal year 2011-12, Lucas was involved in joint ventures with Marathon Oil Company and Nordic Oil, as well as with Seidler Oil & Gas. The company also drilled new wells in the Austin Chalk trend during the same period.
Gregory D. Jordan is an Austin oil and gas attorney, Texas oil and gas lawyer, Austin employment lawyer, and Austin business litigation lawyer. To learn more, visit http://www.theaustintriallawyer.com.