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Lucas Energy Q1 2016 net loss was $1 million

Staff writer |
Lucas Energy announced its financial results for its fiscal 2016 first quarter, ended June 30, 2015. Net loss was $1 million, or $0.73 per common share, which was a 17.7% improvement over the $1.3 million net loss, or $0.96 per share, for the same three month period last year.

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This improvement reflected a decrease in operating expenses of approximately $0.8 million, partially offset by a decline of approximately $0.5 million in sales revenues. The loss per share in both quarters has been adjusted for our 1-for-25 reverse stock split which was effected on July 15, 2015, which reduced the number of our outstanding common shares from 36,354,973 to 1,454,261.

Total revenues from crude oil and natural gas sales for the quarter ended June 30, 2015 decreased by 58.2% to $0.4 million compared to $0.9 million for the same period a year ago, but rose 2.7% sequentially from the fourth quarter. The year-over-year decline was primarily impacted by a $0.4 million drop in realized crude oil prices and a $0.1 million decrease related to a decline in quarterly production volumes.

Production volumes averaged 77 net barrels of oil equivalent (BOE) per day during the three months ended June 30, 2015. The lower production was partially attributable to certain wells that were shut-in for a period of over two months, following severe flooding conditions that impacted most of south and central Texas. Production was also impacted by high decline rates in workover drilling and lateral programs when compared to the same period last year.

Lease operating expenses of $0.2 million for the quarter ended June 30, 2015 decreased $0.3 million, or 64%, from $0.5 million for the same period a year ago, principally due to less production related to reduced flood-related drilling activity and ongoing efforts to improve operating efficiencies and cost reductions.

General and administrative expenses decreased approximately $0.3 million or 36% for the quarter ended June 30, 2015 as compared to the prior year's first quarter primarily due to restructured employee responsibilities and improved operating efficiencies.

Depreciation, depletion, amortization and accretion (DD&A) expenses for the quarter ended June 30, 2015 decreased $0.1 million, or 30%, to $0.3 million from $0.4 million for the same period a year ago. The decrease was primarily due to the shut-in production volumes and the higher front-end production rates from our workover and lateral programs in the same period last year.

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