Lucas Energy, Inc. LEI 8.49% shares had a huge finish to last week — up more than 300 percent on Thursday — after the company unveiled a purchase agreement to acquire underdeveloped land from 21 different entities, including two large blocks in the “liquids-rich” Mid-Continent region.
Investors cheered the development as a sign the company has gained more stable footing in a volatile energy environment. The stock, which traded 30,000 shares for the first three days of last week, traded more than 7 million shares on Thursday.
CEO Discusses Move And What’s Next
In an exclusive interview with Benzinga, Lucas Energy CEO Anthony Schnur said he was “somewhat surprised” by the stock’s heavy trading volume, but added that he’s “learned not to have expectations in the price.”
Schnur said he hasn’t made any changes to his holdings of Lucas stock, with the exception of grants as part of his employment. The current deal environment makes it an inappropriate time to buy.
Regarding specifics of the company’s multi-property deal, Schnur said new drilling opportunities could be realized as early as the second quarter of 2016, though Lucas hasn’t finalized this plan. When asked about the likelihood of deal closure, Schnur is “relatively confident.”
‘We Will Likely Pursue Larger Opportunities’
In May 2015, Lucas announced its non-binding letter of intent with Victory Energy had been terminated. The all-stock merger was reportedly called off after Lucas defaulted on its debt and Victory faced a going-concern warning from auditors, according to TheStreet.
When asked about the failed Victory deal, Schnur said a closure of Lucas Energy’s latest transaction means the company will “likely pursue larger opportunities,” though he didn’t provide any specifics.
Lucas shares were trading near the $7 mark to start 2016; the stock opened December 2015 just above $2.00.
