Black Gold
Long/short equity, oil & gas

Eagle Ford Oil Producer Lucas Energy Needs A Miracle To Survive

Lucas Energy (NYSEMKT:LEI) was recently featured in an article here on Seeking Alpha as a buy. After reading this article, I did some research into the company's filings and I have a differing opinion regarding the company. I personally see many red flags with this company.

Lucas Energy is a small oil and gas producer with the company's main asset being 15,000 net acres in Southeast Texas. The company states it has proved reserves of 5,572 MBOE worth an NPV10 of $132.6 MM. Only 251 MBOEs (4.5%) of these reserves are proved developed producing (PDP) reserves. The remainder (95.5%) are proved undeveloped reserves (PUD). The author of the article also makes a comparison to EOG (NYSE:EOG)...

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