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An internal review of Lucas Energy’s (LEI +11.1%) Eagle Ford properties shows as much as...

An internal review of Lucas Energy’s (LEI +11.1%) Eagle Ford properties shows as much as 14.5M bbl/day of oil, a big boost from its previous estimate of 3.7M bbl/day. The new estimate would take LEI’s Eagle Ford value to more than $275M, a useful number to evaluate offers by potential buyers or to assist in any decision of whether to develop or sell properties.
Comments (3)
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    This should be just "bbls", not "bbl/day".
    23 Jul 2012, 10:26 PM Reply Like
  • JPearce
    , contributor
    Comments (228) | Send Message
     
    Tom
    Is this stock a good buy at today's price? Where do you see this stock priced at within a year?
    27 Aug 2012, 04:26 AM Reply Like
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    Hi J, I believe the stock is a good value at today's prices. The PV10 of $275M as estimated by their reserves may be high because of the difficulty to recover the oil, but as it stands, the market cap of $40M suggests significant room for upside from these levels. I have a hard time giving specific price target to the shares because: 1. The company's aggressive strategy, 2. The possibility of dilutionary other financing activities, 3. Market prices for risk assets and oil. I have been following the company since early 2010 and I think things look as good as ever for their real business and share holder value, but obviously could be wrong.
    27 Aug 2012, 09:21 AM Reply Like
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