HOUSTON, April 8, 2013 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE MKT:LEI) ("Lucas Energy" or the "Company"), an independent oil and gas company with main operations in Texas, today announced that it has completed a $2.75 million bridge loan with an investor group led by two Lucas Energy Directors to fund its current working capital needs. The Company has conducted fundraising efforts recently in anticipation of providing capital for the payments required in connection with the legal settlements previously announced. The Company received a number of term sheets of varying amounts and it became evident that the terms and conditions proposed to the Company were based more on the Company's recent history of net losses instead of the future value and operating plans of the Company. As such, the Company decided to accept the more favorable terms of the bridge loan proposed by the investor group led by two of its Directors.
The bridge loan bears interest at 14% per annum, is due and payable in six months (extendable up to a year under certain circumstances) and contains no pre-payment penalty. As consideration for making the loans, we agreed to grant the lenders five year warrants to purchase an aggregate of 275,000 shares of our common stock at an exercise price of $1.50 per share. We also paid the lenders an aggregate of $55,000 as a commitment fee in connection with the loans.
The funds afford the Company the ability to make the required payments under its previously announced settlement agreements and will provide additional operating funds for the Company's current plan of operations.Anthony Schnur, CEO commented, "I am very pleased to announce the closing of our bridge loan which will enable us to meet our financial requirements and to exploit opportunities we see to enhance our near-term operating performance. I am grateful to our Director-led investor group for the confidence they have shown in our future and for funding us on far more favorable terms than any alternatives we have seen."