Houston-based Lucas Energy Inc. (NYSE MKT: LEI), which has been struggling to improve its financial footing, reported its net loss for fiscal year 2015 increased 9.4 percent over the previous fiscal year’s net loss.
Although the company has made significant progress cutting costs, Lucas’ viability depends on the development of its oil reserves, particularly in the Eagle Ford Shale, and finding the necessary funding for such development, the company noted.
For the 12 months ended March 31, Lucas had a net loss of $5.1 million, or 15 cents per diluted share, compared to a net loss of $4.7 million, or 16 cents per share, for the prior year.
Revenue dropped 42.5 percent to just over $3 million in fiscal year 2015 from $5.22 million the year before. Lucas attributed nearly half of that decline — approximately $1 million — to the drop in oil prices, while the company’s lower production volumes decreased revenues by another $1.2 million compared to the previous year.
Certain asset sales in Madison County, Texas, and lack of funding for drilling activity contributed to the company’s 28 percent decrease in production volumes, Lucas said.
“The past 12 months were particularly challenging for Lucas as we pursued a number of financial transactions and potential business combinations that were not completed,” Lucas CEO Anthony Schnur said in a statement. “The severe drop in crude oil prices that began in the summer of 2014 negatively affected our ability to raise external capital, and the business combinations that we pursued were also affected by the current oil and gas environment.”