Camber Energy (CEIN) 10-Q 14 Aug 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2015	Aug. 11, 2015
Document And Entity Information
Entity Registrant Name	LUCAS ENERGY, INC.
Entity Central Index Key	1,309,082
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,454,287
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONDENSED BALANCE SHEETS (Unaud

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Current Assets
Cash	$ 511,347	$ 166,597
Accounts Receivable	160,210	170,542
Inventories	194,519	194,519
Other Current Assets	105,881	165,800
Total Current Assets	971,957	697,458
Property and Equipment
Oil and Gas Properties (Full Cost Method)	48,538,545	49,299,535
Other Property and Equipment	420,950	420,950
Total Property and Equipment	48,959,495	49,720,485
Accumulated Depletion, Depreciation and Amortization	(12,848,158)	(12,604,570)
Total Property and Equipment, Net	36,111,337	37,115,915
Other Assets	47,273	125,145
Total Assets	37,130,567	37,938,518
Current Liabilities
Accounts Payable	2,470,910	2,436,543
Common Stock Payable	232,437	19,363
Accrued Expenses	$ 465,486	226,975
Note Payable - Victory		350,000
Current Portion of Long-Term Notes Payable - Rogers	$ 7,265,407	7,249,411
Total Current Liabilities	10,434,240	10,282,292
Asset Retirement Obligation	$ 1,083,194	$ 1,051,694
Long-Term Notes Payable, net of current portion - Rogers
Commitments and Contingencies (see Note 10)
Stockholders' Equity
Preferred Stock Series A, 2,000 Shares Authorized of $0.001 Par, 500 Shares Issued and Outstanding	$ 773,900	$ 773,900
Common Stock, 100,000,000 Shares Authorized of $0.001 Par, 1,405,986 Shares Issued and 1,404,510 Outstanding at June 30, 2015 and 1,402,297 Shares Issued and 1,400,821 Outstanding at March 31, 2015, respectively	1,406	1,402
Additional Paid in Capital	57,435,899	57,395,429
Accumulated Deficit	(32,548,913)	(31,517,040)
Common Stock Held in Treasury, 1,476 Shares, at Cost	(49,159)	(49,159)
Total Stockholders' Equity	25,613,133	26,604,532
Total Liabilities and Stockholders' Equity	$ 37,130,567	$ 37,938,518

CONDENSED BALANCE SHEETS (Unau3

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	2,000	2,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	500	500
Preferred stock, shares outstanding	$ 500	$ 500
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	1,405,986	1,402,297
Common stock, shares outstanding	1,404,510	1,400,821
Treasury stock, shares in treasury	1,476	1,476

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Revenues
Crude Oil	$ 393,727	$ 941,920
Total Revenues	393,727	941,920
Operating Expenses
Lease Operating Expenses	162,724	453,267
Severance and Property Taxes	37,623	73,495
Depreciation, Depletion, Amortization, and Accretion	275,088	390,386
General and Administrative	549,821	860,452
Total Expenses	1,025,256	1,777,600
Operating Loss	(631,529)	(835,680)
Other Expense (Income)
Interest Expense	385,455	381,705
Other Expense (Income), Net	14,889	36,489
Total Other Expenses	400,344	418,194
Net Loss	$ (1,031,873)	$ (1,253,874)
Net Loss Per Share
Basic and Diluted (in dollars per share)	$ (0.73)	$ (0.96)
Weighted Average Shares Outstanding
Basic and Diluted (in shares)	1,404,767	1,305,109

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities
Net Loss	$ (1,031,873)	$ (1,253,874)
Adjustments to reconcile net losses to net cash used in operating activities:
Depreciation, Depletion, Amortization and Accretion	275,088	390,386
Share-Based Compensation	40,784	65,799
Amortization of Discount on Notes	15,996	15,996
Amortization of Deferred Financing Costs	77,872	72,719
Settlement of Debt		(10,057)
Gain on Sale of Property and Equipment		(1,722)
Changes in Components of Working Capital and Other Assets
Accounts Receivable	10,332	(1,548)
Other Current Assets	59,919	59,929
Accounts Payable and Accrued Expenses	279,389	(116,282)
Net Cash Used in Operating Activities	(272,493)	(778,654)
Investing Cash Flows
Additions of Oil and Gas Properties	(188,649)	(853,576)
Proceeds from Sale of Oil and Gas Properties	555,892
Proceeds from Sale of Other Property and Equipment		3,000
Net Cash Provided by (Used in) Investing Activities	367,243	(850,576)
Financing Cash Flows
Proceeds from the Funding of Notes Payable	250,000
Net Proceeds from the Sale of Common Stock		1,847,090
Deferred Financing Costs		(32,621)
Net Cash Provided by Financing Activities	250,000	1,814,469
Increase (Decrease) in Cash	344,750	185,239
Cash at Beginning of the Period	166,597	522,155
Cash at End of the Period	$ 511,347	$ 707,394

GENERAL

GENERAL	3 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1 - GENERAL History of the Company. The accompanying unaudited interim condensed financial statements of Lucas Energy, Inc. (“Lucas” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Lucas’s annual report filed with the SEC on Form 10-K for the year ended March 31, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the condensed financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year 2014 as reported in the Form 10-K have been omitted. The Company’s fiscal year ends on the last day of March of the calendar year. The Company refers to the twelve-month periods ended March 31, 2016 and 2015 as its 2016 and 2015 fiscal years, respectively. Pursuant to the authorization provided by the Company’s stockholders at the Company’s March 25, 2015 annual meeting of stockholders, and in order to meet the continued listing standards of the NYSE MKT, the Board of Directors of the Company approved the filing of a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada to effect a 1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock which was effective on July 15, 2015 (the “Reverse Split”). The effect of the Reverse Split was to combine each 25 shares of outstanding common stock prior to the Reverse Split into one new share subsequent to the Reverse Split, with no change in authorized shares or par value per share, and to reduce the number of common stock shares outstanding from approximately 35.1 million shares to approximately 1.4 million shares (prior to rounding fractional shares up to the nearest whole share). Proportional adjustments were also made to the conversion and exercise prices of the Company’s outstanding convertible preferred stock, warrants and stock options, and to the number of shares issued and issuable under the Company’s stock incentive plans. All issued and outstanding shares of common stock, conversion terms of preferred stock, options and warrants to purchase common stock and per share amounts contained in the financial statements, in accordance with SAB TOPIC 4C, have been retroactively adjusted to reflect the Reverse Split for all periods presented.

LIQUIDITY AND GOING CONCERN CON

LIQUIDITY AND GOING CONCERN CONSIDERATIONS	3 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
LIQUIDITY AND GOING CONCERN CONSIDERATIONS	NOTE 2 – LIQUIDITY AND GOING CONCERN CONSIDERATIONS At June 30, 2015, the Company’s total current liabilities of $10.4 million exceeded its total current assets of $1.0 million, resulting in a working capital deficit of approximately $9.4 million, while at March 31, 2015, the Company’s total current liabilities of $10.3 million exceeded its total current assets of $0.7 million, resulting in a working capital deficit of $9.6 million. The $0.2 million decrease in the working capital deficit is primarily related to the settlement of the $0.4 million note payable (as of March 31, 2015) to Victory Energy Corporation (“Victory”) offset by the addition of approximately $0.2 million relating to the value of 44,070 shares of restricted common stock issuable to Victory in settlement of such note payable, which amount was accrued as of June 30, 2015 (as such shares had not been physically issued) and evidenced by common stock payable on the balance sheet as of June 30, 2015, which award and settlement agreement are described below under “Note 13 – Settlement Agreements”. On February 3, 2015, Lucas executed a Letter of Intent and Term Sheet (“Letter of Intent”) for a proposed business combination with Victory. Through May 2015, the Company had received $600,000 in funding from Victory per the terms of a Pre-Merger Loan and Funding Agreement (the “Loan Agreement”) between Lucas and Victory, which was executed on February 26, 2015. On May 11, 2015, Victory notified Lucas that Victory did not intend to proceed with the merger contemplated by the Letter of Intent and thereby terminated the Letter of Intent. Thereafter, on June 24, 2015, Lucas and Victory executed a Settlement Agreement and Mutual Release whereby Lucas acknowledged and agreed that among other things, Lucas would exchange working interests in certain oil and gas properties and issue Victory 44,070 shares of restricted common stock in full satisfaction of the $600,000 owed by Lucas to Victory (which exchange is described in greater detail below under “Note 13 – Settlement Agreements”). The Company failed to make the required May, June and July 2015 interest payments (approximately $73,000 for each month) due under the terms of the Letter Loan, as amended (see “Note 6 – Note Payable” below). Consequently, the amount owed under the Letter Loan, as amended, of approximately $7.3 million has been in default since May 2015, and accrues a default interest rate of 18% per annum. On August 12, 2015, the Company entered into an amendment to the Letter Loan and the promissory note entered into in connection therewith (as amended to date). Pursuant to the amendment, the maturity date of the Letter Loan and the promissory note, which was August 13, 2015, was extended to September 13, 2015, and among other things, we also agreed to reprice the exercise price of the outstanding warrants to purchase 11,195 shares of common stock held by Robertson Global Credit, LLC, the administrator of the loan, to $0.01 per share (from $33.75 per share prior to the amendment). Notwithstanding the change in the maturity date of the Letter Loan and promissory note, the lender did not waive any past events of default by us under the Letter Loan and retained the right to pursue any and all remedies for those defaults at any time. We are in discussions with the lender regarding a potential restructuring of the Letter Loan, and the lender has not provided us any notice of their intent to demand immediate repayment of the amounts owed or to enforce their security interests associated therewith. Therefore, we are hopeful that we and the lender will be able to reach mutually agreeable terms on a restructuring of the debt subsequent to the date of this report. In the event the lender seeks the immediate repayment of the debt (which is currently in default), which they have the right to do at any time, we will be forced to sell assets to raise additional funds and may be forced to seek bankruptcy protection. Additionally, because we are currently in default of the debt, the lender can at any time, subject to the terms of the Letter Loan, as amended, foreclose on our assets, pursuant to its security interest over substantially all of our assets. On August 1, 2015, the Company was required to provide approximately $3.4 million of funding in order to participate in the future drilling activities contemplated by the June 2015 sale of certain oil and gas properties by us to Earthstone Energy, Inc. (described below under “Note 4 – Property and Equipment”). As of the date of this report, we were unable to provide the required funding, and as a result, we were not able to exercise our option to participate. Over the next several months, we anticipate requiring funding of approximately $0.5 million for drilling and workover activities on existing properties, as well as the funding required to repay the amounts owed under the Letter Loan, in the event we cannot extend or restructure such debt. In order to address the Company’s capital obligations over the next several months and ensure the future viability of the Company, we plan to seek to acquire the necessary funding through a combination with another entity with the financing to recapitalize the new company or by acquiring the necessary development funding on a stand-alone basis. Lucas is actively discussing potential transactions (financings, acquisitions and mergers) which we believe, if finalized and completed, will provide the financial mass to develop the significant reserves at our disposal. As of this date, Lucas has not entered into any binding agreements and no definitive transactions are pending in connection with our planned strategic transaction. Due to the nature of oil and gas interests, i.e., that rates of production generally decline over time as oil and gas reserves are depleted, if we are unable to drill additional wells and develop our proved undeveloped reserves (PUDs) or acquire additional operating properties; we believe that our revenues will continue to decline over time. Furthermore, in the event we are unable to raise additional funding in the future, we will not be able to complete drilling and/or workover activities and may not be able to make required payments on our outstanding liabilities, including the amounts owed under the Letter Loan, as amended, and in fact as described above, we have not been able to make certain of such payments to date and such Letter Loan is currently in default. Therefore, in the event we do not raise additional funding in the future, we may be forced to scale back our business plan, sell assets to satisfy outstanding debts or take other remedial steps which may include seeking bankruptcy protection. These conditions raise substantial doubt about our ability to continue as a going concern for the next twelve months. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company has provided a discussion of significant accounting policies, estimates and judgments in its 2015 Annual Report. There have been no changes to the Company’s significant accounting policies since March 31, 2015.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Jun. 30, 2015
Property and Equipment
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT Oil and Gas Properties Lucas uses the full cost method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized. Properties not subject to amortization consist of acquisition, exploration and development costs, which are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired and the corresponding costs are added to the capitalized costs subject to amortization. Costs of oil and gas properties are amortized using the units of production method. Amortization expense calculated per equivalent physical unit of production amounted to $31.95 per barrel of oil equivalent (“Boe”) for the three months ended June 30, 2015, and was $36.34 per Boe for the three months ended June 30, 2014. In applying the full cost method, Lucas performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value,” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. The price used in the ceiling test is the simple average first of the month price for the prior 12 months. If capitalized costs exceed this limit, the excess is charged as an impairment expense. As of June 30, 2015, no impairment of oil and gas properties was indicated. All of Lucas’s oil and gas properties are located in the United States. Below are the components of Lucas’s oil and gas properties recorded at: June 30, March 31, Proved leasehold costs $ 10,297,216 $ 11,062,137 Costs of wells and development 37,523,992 37,520,061 Capitalized asset retirement costs 717,337 717,337 Total oil and gas properties 48,538,545 49,299,535 Accumulated depreciation and depletion (12,561,767 ) (12,336,704 ) Net capitalized costs $ 35,976,778 $ 36,962,831 On June 25, 2015, we closed the sale (effective June 1, 2015) of 139.04 net acres of oil and gas properties located in Karnes County, Texas, to Earthstone Energy, Inc. (“Earthstone Energy”), which included the sale of all working interest, net lease interest and contractual rights owned by us in the Copeland-Karnes Unit and the Griffin Unit (the “Units”), but not any contractual obligations relating to the LEI Copeland-Karnes wellbore and the LEI Griffin wellbore or production therefrom. Earthstone Energy also became the operator of the Units. The total purchase price paid to us for the purchase was $347,600, along with the grant from Earthstone Energy to us of an option to participate, at cost, for up to 20% of an 8/8ths interest, in all future operations within the proposed ESTE-Boggs Unit upon successfully obtaining the required funding, provided that we were required to exercise the option (with proof of funding) on or before August 1, 2015, or such earlier date as Earthstone Energy begins drilling. We also agreed, in the event we exercised the option, to pay Earthstone Energy for 20% of all costs incurred. As of the date of this report, we were unable to provide the required funding and as a result, we were not able to exercise our option to participate, which option expired. Also, on June 25, 2015, per the Earthstone Settlement and Earthstone/Victory Settlement (described below under “Note 13 - Settlement Agreements”), Earthstone agreed to pay us approximately $54,000 (representing the net of amounts previously paid by Victory to Earthstone in connection with the terms of a prior participation agreement covering certain leases in Karnes County, Texas and certain amounts owed to us in connection with title issues discovered in connection with those leases) and we agreed that we are deemed a non-consenting party in connection with such wells; and Victory agreed to assign certain oil and gas interests in the wells which we transferred to Victory in February 2015, to Earthstone. As a result, we capitalized approximately $142,000 (approximately $196,000 paid by Victory to Earthstone less approximately $54,000 paid by Earthstone to Lucas) to our oil and gas property full-cost pool. In addition, on June 25, 2015, per the Victory Settlement Agreement (described below under “Note 13 - Settlement Agreements”), Victory retained ownership and control over five Penn Virginia well-bores and also retained the obligations to pay expenses associated with such Penn Virginia well-bores effective after August 1, 2014; and we also assigned Victory rights to another property located in the same field as the Penn Virginia well-bores. In total, six Penn Virginia well-bores rights were assigned to Victory, representing an approximately $596,000 credit to our oil and gas property full-cost pool. Office Lease On July 27, 2015, we moved our corporate headquarters from 3555 Timmons Lane, Suite 1550, Houston, Texas 77027 to 450 Gears Road, Suite 780, Houston, Texas 77067 in connection with the expiration, pursuant to its terms, of our prior office space lease. We sublease approximately 3,300 square feet of office space pursuant to a sublease that expires on January 31, 2016 that has a base monthly rent of approximately $5,000 of which we have already paid four months in advance as well as a $5,000 security deposit.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	3 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	NOTE 5 – ASSET RETIREMENT OBLIGATIONS The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the retirement of oil and gas property and equipment for the three-month period ended June 30, 2015. Lucas does not have short-term asset retirement obligations as of June 30, 2015. Carrying amount at beginning of period - March 31, 2015 $ 1,051,694 Accretion 31,500 Carrying amount at end of period - June 30, 2015 $ 1,083,194

NOTE PAYABLE

NOTE PAYABLE	3 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
NOTE PAYABLE	NOTE 6 – NOTE PAYABLE Victory Loan On February 3, 2015, Victory and Lucas entered into a Letter of Intent for Business Combination between Victory and Lucas (the “Letter of Intent”) that outlined the proposed terms under which Victory and Lucas planned to combine through a merger (the “Merger”). In anticipation of the Merger, Victory desired to provide Lucas with loans necessary to allow Lucas to meet working capital requirements and to pay down certain payables so that Lucas could maintain key vendors and cover transaction costs during the period prior to the Merger. As collateral for the loans that were be made by Victory to Lucas, Lucas was to pledge to Victory shares of Lucas common stock pursuant to a pledge and security agreement. Pursuant to the Loan Agreement, Victory agreed to loan the Company up to $2 million, with $250,000 initially loaned on February 26, 2015 (the “Closing” and the “Initial Draw”). The Initial Draw, and any other amounts borrowed under the Loan Agreement were to be evidenced by a Secured Subordinated Delayed Draw Term Note issued by the Company in favor of Victory, which was in an initial amount of $250,000 (the “Draw Note”). Amounts owed under the Draw Note were to be secured by the pledge of shares of the Company’s common stock pursuant to the terms of a Pledge Agreement between the Company as pledgor and Victory as secured party (the “Pledge Agreement”). Victory had loaned Lucas a total of $350,000 through March 31, 2015, which was recognized as a current liability on the balance sheet on March 31, 2015 as the maturity date for the loan was February 26, 2016. Through May 2015, Victory loaned Lucas an additional $250,000 for a total loan of $600,000. On May 11, 2015, Victory notified Lucas that Victory did not intend to proceed with the Merger and thereby terminated the Letter of Intent. Thereafter, on June 24, 2015, Lucas and Victory executed a Settlement Agreement and Mutual Release whereby among other things, Lucas acknowledged that Victory had no further obligation to advance any funds to Lucas under the Loan Agreement, the Draw Note or otherwise and Lucas exchanged working interests in certain oil and gas properties and 44,070 shares of restricted common stock (the “Settlement Shares”) in complete satisfaction of the $600,000 owed to Victory under the Loan Agreement. Therefore, we recognized no liability to Victory as of June 30, 2015 on our balance sheet. Rogers Loan Effective on August 13, 2013, Lucas entered into a Letter Loan Agreement with Louise H. Rogers (as amended and modified to date, the “Letter Loan”). In connection with the Letter Loan and a Promissory Note entered into in connection therewith, Ms. Rogers loaned the Company $7.5 million (the “Loan”). The Loan accrues interest at the rate of 12% per annum (18% upon the occurrence of an event of default), can be prepaid by Lucas at any time without penalty after November 13, 2013 and was due and payable on August 13, 2015, provided that $75,000 in interest only payments were due on the Loan during the first six months of the term (which were escrowed by Lucas) and beginning on March 13, 2014, Lucas was required to make monthly amortization principal payments equivalent to the sum of fifty-percent of the Loan during months seven through twenty-four of the term (which requirement has since been modified by the amendment described below). An escrow deposit of $450,000 for the first six months interest was recorded as restricted cash within the balance sheet, with no balance outstanding on the balance sheet as of June 30, 2015. Lucas is also required to make mandatory prepayments of the loan in the event the collateral securing the Loan does not meet certain thresholds and coverage ratios. Repayment of the Loan is secured by a security interest in substantially all of Lucas’s assets which was evidenced by a Security Agreement and a Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing. Lucas agreed to pay a $15,000 quarterly administrative fee in connection with the Loan and grant the administrator a warrant to purchase up to 11,195 shares of Lucas’s common stock at an exercise price of $33.75 per share and a term continuing until the earlier of (a) August 13, 2018; and (b) three years after the payment in full of the Loan. On August 16, 2013, a portion of the funds raised in connection with the Loan were used to repay $3.25 million in outstanding notes issued in April and May 2013. The Company also capitalized approximately $495,000 in deferred financing costs in relation to expenses incurred in the execution of the Letter Loan. The Company recorded the fair value of warrants issued in connection with the Note Payable as a discount on the Note and amortizes the discount through non-cash interest expense using the effective interest method over the term of the debt. The fair value of the 11,195 Letter Loan warrants was recorded as a $127,963 debt discount, of which, $122,636 has been amortized as of June 30, 2015. Effective on April 29, 2014, the Company entered into an Amended Letter Loan Agreement (the “Amended Letter Loan”) and Amended and Restated Promissory Note (the “Amended Note”), each effective March 14, 2014, in connection with the Letter Loan. Pursuant to the Amended Letter Loan and Amended Note, we restructured the repayment terms of the original Letter Loan and Promissory Note to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014, during which six month period interest on the Amended Note accrued at 15% per annum (compared to 12% per annum under the terms of the original Promissory Note). Beginning on October 13, 2014, the interest rate of the Amended Note returned to 12% per annum and we were required to pay the monthly amortization payments in accordance with the original repayment schedule (which total approximately $205,000 to $226,000, depending on the due date), as well as additional principal amortization payments of approximately $266,000 every three months (beginning October 13, 2014, and ending on July 13, 2015) until maturity, with approximately $3.87 million due on maturity, which maturity date remained August 13, 2015. Additionally, we agreed to pay all legal expenses of the lender related to the amendments and agreed to (i) pay $25,000 and (ii) issue 3,000 shares of restricted common stock, to Robertson Global Credit, LLC (“Robertson”), the administrator of the Loan, as additional consideration for the modifications. Should we opt to prepay the Amended Note prior to the maturity date, we are required to pay an exit fee equal to the advisory fees of approximately $15,000 per quarter that would have been due, had the note remained outstanding through maturity. On November 24, 2014, and effective on November 13, 2014, the Company entered into a Second Amended Letter Loan Agreement (the “Second Amended Letter Loan”) and Second Amended and Restated Promissory Note (the “Second Amended Note”), in connection with the Letter Loan and the Amended Letter Loan. Pursuant to the Second Amended Letter Loan and a Second Amended Note, we restructured the repayment terms of the Amended Letter Loan and Amended Note to defer the principal payment in the amount of $428,327 which was originally due November 13, 2014, until December 13, 2014, as we were in the process of obtaining new financing, which new financing failed to close as a result of the subsequent precipitous decline in oil prices. Additionally, the Second Amended Letter Loan and Second Amended Note provides that (a) amounts outstanding under the Second Amendment Note will accrue interest at the rate of 15% per annum and (b) additional principal amortization payments of approximately $266,000 are due every three months (beginning January 13, 2015, and ending on July 13, 2015) until maturity, with approximately $3.87 million due on maturity, which maturity date remained August 13, 2015. Additionally, we agreed to pay all legal expenses of the lender related to the amendments and agreed to pay $15,000 to Robertson, the administrator of the Loan, as additional consideration for the modifications. We failed to make the required December 13, 2014 principal payment under the terms of the Second Amended Letter Loan. Specifically, on January 26, 2015, we received notice from a representative of Ms. Rogers that we had defaulted on a payment. Consequently, the amount owed under the Second Amended Letter Loan and Second Amended Note of approximately $7.3 million accrued at a default interest rate of 18% per annum. Subsequently, we also failed to make the required January 13, 2015 and February 13, 2015 principal payments under the terms of the Second Amended Letter Loan. The Company capitalized approximately $88,000 in additional deferred financing costs in relation to expenses incurred in connection with the execution of the Amended Letter Loan and the Second Amended Letter Loan. Together, with the initial Letter Loan, the Amended Letter Loan and the Second Amended Letter Loan, the Company has paid approximately $1.4 million in cash interest and amortized approximately $536,000 in deferred financing cost as of June 30, 2015. On February 23, 2015, we entered into a letter agreement (the “Letter Agreement”) with Ms. Rogers. Pursuant to the Letter Agreement, the parties agreed that the interest payments due under the promissory note for January, February and March 2015 (which January and February 2015 interest payments were not previously made by the Company) would be added to the principal amount of the promissory note and be due at maturity; and that interest only payments on the promissory note at the rate of 12% per annum (compared to 15% per annum pursuant to the Second Amended and Restated Promissory Note, and 18% per annum as a result of various events of default which occurred under the loan documents prior to the parties’ entry into the Letter Agreement) would be due between April 2015 and August 2015 compared to the terms of the Second Amended and Restated Promissory Note, which required amortizing principal payments every month between December 2014 and August 2015 (which amortizing payments we failed to pay from December 2014 to July 2015). In total, $211,769 was added to the principal amount bringing the total principal balance due to our lender to $7,270,734 as of February 23, 2015. The Letter Agreement also provides us the right to extend the maturity date of the promissory note to September 13, 2015, by paying an extension fee of 2% of the remaining balance of the note on or before the maturity date, and to thereafter further extend the maturity date of the promissory note to October 13, 2015, by paying an additional extension fee of 2% of the then remaining balance of the note on or before the September 13, 2015 extended maturity date. We also agreed to pay the lender all current and past due credit administration and legal fees, a $50,000 loan amendment fee upon final repayment of the promissory note, and to require Victory to provide Rogers a promissory note in the amount of $250,000, payable within 90 days following the termination of our proposed merger transaction with Victory. Subsequently (described below under “Note 13 - Settlement Agreements”), Victory and Ms. Rogers entered into a settlement agreement providing for the repayment of the $250,000 owed. The lender agreed to waive the prior defaults under the promissory note upon the parties’ entry into the new agreements. The Company failed to make the required May, June and July 2015 interest payments (approximately $73,000 for each month) under the terms of the Letter Agreement. Consequently, the amount owed under the Letter Loan, as amended, of approximately $7.3 million has been in default since May 2015, and accrues a default interest rate of 18% per annum. On August 12, 2015, the Company entered into an amendment to the Letter Loan and the promissory note entered into in connection therewith (as amended to date). Pursuant to the amendment, the maturity date of the Letter Loan and the promissory note, which was August 13, 2015, was extended to September 13, 2015, and among other things, we also agreed to reprice the exercise price of the outstanding warrants to purchase 11,195 shares of common stock held by Robertson Global Credit, LLC, the administrator of the loan, to $0.01 per share (from $33.75 per share prior to the amendment). Notwithstanding the change in the maturity date of the Letter Loan and promissory note, the lender did not waive any past events of default by us under the Letter Loan and retained the right to pursue any and all remedies for those defaults at any time. We are in discussions with the lender regarding a potential restructuring or extension of the Letter Loan, and the lender has not provided us any notice of their intent to demand immediate repayment of the amounts owed or to enforce their security interests associated therewith. Therefore, we are hopeful that we and the lender will be able to reach mutually agreeable terms on a restructuring of the debt subsequent to the date of this report. In the event the lender seeks the immediate repayment of the debt (which is currently in default), which they have the right to do at any time, we will be forced to sell assets to raise additional funds and may be forced to seek bankruptcy protection. Additionally, because we are currently in default of the debt, the lender can at any time, subject to the terms of the Letter Loan, as amended, foreclose on our assets, pursuant to its security interest over substantially all of our assets. As of June 30, 2015, the amount owed under the Letter Loan still had an August 13, 2015 maturity date; therefore, the outstanding balance of the Note Payable is $7,265,407 (net of the remaining $5,327 note discount) and listed as a current liability in the balance sheet.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY Preferred Stock As of June 30, 2015, Lucas had 500 shares of Series A Convertible Preferred Stock issued and outstanding. Each share of the Series A Convertible Preferred Stock is convertible into 40 shares of the Company’s common stock and has no liquidation preference and no maturity date. Additionally, the conversion rate of the Series A Convertible Preferred Stock adjusts automatically in connection with and in proportion to any dividends payable by the Company in common stock. Common Stock The following summarizes Lucas’s common stock activity during the three-month period ended June 30, 2015: Common Shares Amount (a) Per Share Issued Shares Treasury Outstanding Balance at March 31, 2015 1,402,297 (1,476 ) 1,400,821 Share-Based Compensation $ 19,363 $ 5.25 3,689 — 3,689 Balance at June 30, 2015 1,405,986 (1,476 ) 1,404,510 (a) Net proceeds or fair market value on grant date, as applicable. See Note 9 – Share-Based Compensation for information on common stock activity related to Share-Based Compensation, including shares granted to the board of directors, officers, employees and consultants. Warrants During the three months ended June 30, 2015, no warrants were issued, exercised or cancelled. The following is a summary of the Company’s outstanding warrants at June 30, 2015: Warrants Exercise Expiration Intrinsic Value Outstanding Price ($) Date at June 30, 2015 100,422 (1) 71.50 July 4, 2016 — 41,300 (2) 57.50 October 18, 2017 — 11,000 (3) 37.50 April 4, 2018 — 2,000 (4) 37.50 May 31, 2018 — 11,195 (5) 33.75 August 13, 2018 — 66,668 (6) 25.00 April 21, 2019 — 232,585 $ — (1) Series B Warrants issued in connection with the sale of units in the Company’s unit offering in December 2010. The Series B Warrants became exercisable on July 4, 2011 and will remain exercisable thereafter until July 4, 2016. (2) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017. (3) Warrants issued in connection with the issuance of certain notes in April 2013, or which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018. (4) Warrants issued in connection with the issuance of certain notes in May 2013, for which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018. (5) Warrants issued in connection with the Letter Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until the earlier of (a) August 13, 2018; and (b) three years after the payment in full of the Loan. The exercise price was lowered to $0.01 per share on August 12, 2015. (6) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE 9 – SHARE-BASED COMPENSATION Lucas measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. Common Stock Lucas issued 3,689 shares of its common stock with an aggregate grant date fair value of $19,363 during the three-month period ended June 30, 2015, which were valued based on the trading value of Lucas’s common stock on the date of grant. Also, on June 30, 2015, the Company awarded an additional 5,621 shares of its common stock with an aggregate grant fair value of $19,673, which were valued based on the trading value of Lucas’s common stock on the date of grant. Those common stock awards had yet to be physically issued as of June 30, 2015, and therefore, were recognized as accrued common stock payable on the balance sheet. The shares were awarded according to the employment agreement with an officer and as additional compensation for other managerial personnel. Stock Options As of June 30, 2015, the Company had 24,920 stock options outstanding with a weighted average price of $33.80 and 36,579 stock options outstanding with a weighted average price of $34.75 as of June 30, 2014. Of the Company’s outstanding options, no options expired, were exercised, or forfeited during the three months ended June 30, 2015 and June 30, 2014, respectively. Additionally, no stock options were granted during the quarters ended June 30, 2015 and June 30, 2014, respectively. Compensation expense related to stock options outstanding during the three-month periods ended June 30, 2015 and June 30, 2014 was $21,111 and $40,689, respectively. Options outstanding and exercisable at June 30, 2015 and June 30, 2014 had no intrinsic value, respectively. The intrinsic value is based upon the difference between the market price of Lucas’s common stock on the date of exercise and the grant price of the stock options. The following tabulation summarizes the remaining terms of the options outstanding: Exercise Price ($) Remaining Life (Yrs.) Options Outstanding Options Exercisable 32.00 * 2,000 2,000 51.75 5.3 1,920 1,920 24.50 1.5 3,000 3,000 40.75 2.3 4,000 2,000 43.50 2.3 6,000 6,000 40.25 2.5 2,000 2,000 39.50 2.3 2,000 — 5.50 2.7 4,000 4,000 Total 24,920 20,920 *Options expired on July 2, 2015 and are no longer outstanding as of the date of this report. As of June 30, 2015, total unrecognized stock-based compensation expense related to all non-vested stock options was $70,597, which is being recognized over a remaining weighted average period of approximately 1.6 years. In prior periods, the shareholders of the Company approved the Company’s 2014, 2012 and 2010 Stock Incentive Plans (“the Plans”). The Plans are intended to secure for the Company the benefits arising from ownership of the Company’s common stock by the employees, officers, directors and consultants of the Company, all of whom are and will be responsible for the Company’s future growth. The Plans provide an opportunity for any employee, officer, director or consultant of the Company to receive incentive stock options (to eligible employees only), nonqualified stock options, restricted stock, stock awards and shares in performance of services. There are 56,916 shares available for issuance under the Plans as of June 30, 2015.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES Legal Proceedings

POSTRETIREMENT BENEFITS

POSTRETIREMENT BENEFITS	3 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
POSTRETIREMENT BENEFITS	NOTE 11 – POSTRETIREMENT BENEFITS Lucas maintains a matched defined contribution savings plan for its employees. During the three-month periods ended June 30, 2015 and 2014, Lucas’s total costs recognized for the savings plan were $7,375 and $12,324, respectively.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 12 – SUPPLEMENTAL CASH FLOW INFORMATION Net cash paid for interest and income taxes was as follows for the three-month periods ended June 30, 2015 and 2014: Three Months Ended June 30, 2015 2014 Interest $ 73,465 $ 284,058 Income taxes — — Non-cash investing and financing activities for the three-month periods ended June 30, 2015 and 2014 included the following: Three Months Ended June 30, 2015 2014 Accrued capital expenditures included in accounts payable and accrued liabilities $ 610,627 $ 675,820 Extinguishment of note payable in exchange of common stock 212,764 — Extinguishment of note payable in exchange of certain oil and gas properties 387,236 — Issuance of restricted stock for amended loan — 47,250

SETTLEMENT AGREEMENTS

SETTLEMENT AGREEMENTS	3 Months Ended
	Jun. 30, 2015
Settlement Agreements
SETTLEMENT AGREEMENTS	NOTE 13 – SETTLEMENT AGREEMENTS Effective on June 25, 2015, (a) we entered into (1) a Compromise Settlement Agreement and Mutual General Release with Earthstone Operating, LLC, Earthstone Energy, Inc., Oak Valley Resources, LLC, Oak Valley Operating LLC and Sabine River Energy, LLC (collectively “Earthstone” and the “Earthstone Settlement”); (2) a Compromise Settlement Agreement and Mutual General Release with Earthstone and Victory, AEP Assets LLC and Aurora Energy Partners (collectively the “Victory Parties” and the “Earthstone/Victory Settlement”); and (3) a Settlement Agreement and Mutual Release with Victory (the “Victory Settlement”); and (b) Victory and Louise H. Rogers, our senior lender (“Rogers”) entered into a Settlement Agreement and Mutual Release (the “Rogers Settlement”). Earthstone Settlement and Earthstone/Victory Settlement Pursuant to the terms of the Earthstone Settlement and the Earthstone/Victory Settlement, Earthstone agreed to pay us $54,020 (representing the net of amounts previously paid by Victory to Earthstone in connection with the terms of a participation agreement covering certain leases in Karnes County, Texas and certain amounts owed to us in connection with title issues discovered in connection with those leases) and we agreed that we are deemed a non-consenting party in connection with such Wells; and Victory agreed to assign certain oil and gas interests in the Wells which we transferred to Victory in February 2015, to Earthstone. We and Earthstone also agreed to not disparage or talk negatively about each other and further agreed to release each other (the Victory Parties also agreed to release Earthstone pursuant to the Earthstone/Victory Settlement) from any and all claims, demands and causes of action which either party had against the other prior to the June 25, 2015 effective date of the Earthstone/Victory Settlement, whether known or unknown, except in connection with the breach, enforcement or interpretation of the Earthstone/Victory Settlement. Victory Settlement Pursuant to the Victory Settlement, we and Victory agreed to terminate any and all obligations between the parties pursuant to that certain February 2, 2015 Letter of Intent for Business Combination (the “Letter of Intent”), pursuant to which we and Victory previously planned to combine our companies, and that certain Pre-Merger Collaboration Agreement dated February 26, 2015, as amended by amendment No. 1 thereto, dated March 3, 2015 (as amended, the “Collaboration Agreement”); that Victory would retain ownership and control over five Penn Virginia well-bores (the “Penn Virginia Well-Bores”) and would also retain the obligations to pay expenses associated with such Penn Virginia Well-Bores effective after August 1, 2014; and that we would also assign Victory rights to another property located in the same field as the Penn Virginia Well-Bores. We also confirmed the amount of $600,000 previously advanced to us by Victory pursuant to the terms of a prior Pre-Merger Loan and Funding Agreement dated February 26, 2015 (the “Funding Agreement”); that Victory has no further obligations to advance any additional funds to us pursuant to the terms of the Funding Agreement (which originally provided us the right to borrow up to $2 million from Victory); and that we would issue 44,070 shares of our restricted common stock to Victory (the “Victory Shares”) in full consideration of the $600,000 owed under the Funding Agreement (which will be held in escrow until the payment of amounts owed to Rogers under the Rogers Settlement described below). We also agreed to grant Victory piggyback registration rights in connection with the Victory Shares and Victory agreed to leakout terms associated with the Victory Shares, whereby Victory may not sell through a broker (post reverse split values), more than 1,000 of the Victory Shares per day; 5,000 of the Victory Shares per week; and 20,000 of the Victory Shares per month. We and Victory also agreed to release each other from any and all claims, demands and causes of action which either party had against the other prior to the June 25, 2015 effective date of the Victory Settlement, whether known or unknown, in connection with the terminated agreements. The Victory Shares are in lieu of any shares of common stock we were required to pledge to Victory pursuant to the terms of the Funding Agreement and related agreements. Rogers Settlement Pursuant to the Rogers Settlement, Victory and Rogers agreed, among other things, to terminate the $250,000 contingently payable note which was issued to Rogers in connection with the entry by us and Victory into the Collaboration Agreement and that Victory would pay Rogers, on or before July 15, 2015, $253,750 (which amount when paid will reduce amounts we owe to Rogers under our loan agreement with Rogers), and that Rogers’ legal counsel will hold the assignment of the additional Penn Virginia property and the Victory Shares (described above) in escrow until such time as the required payment is made by Victory. As of the date of this report, Victory has not made the required payment.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS Pursuant to the authorization provided by the Company’s stockholders at the Company’s March 25, 2015 annual meeting, and in order to meet the continued listing standards of the NYSE MKT, on June 29, 2015, the Board of Directors approved the filing of a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada to effect a 1-for-25 reverse stock split of all outstanding common stock shares of the Company, effective on July 15, 2015. The effect of the reverse stock split combined each 25 shares of outstanding common stock into one new share, with no change in authorized shares or par value per share, and reduced the number of common stock shares outstanding from 36,354,973 shares to 1,454,261 shares. Proportional adjustments were made to the conversion and exercise prices of the Company’s outstanding convertible preferred stock, warrants and stock options, and to the number of shares issued and issuable under the Company’s stock incentive plans. The Company’s trading symbol of “LEI” did not change as a result of the reverse stock split, and the common stock trades under a new CUSIP number, 549333300. In accordance with SAB TOPIC 4C, the Company has reported the effects of this stock split retrospectively to the earliest period presented in these financial statements. The Company failed to make the required May, June and July 2015 interest payments (approximately $73,000 for each month) under the terms of the Letter Agreement (see “Note 6 – Note Payable” above). Consequently, the amount owed under the Letter Loan, as amended, of approximately $7.3 million has been in default since May 2015, and accrues a default interest rate of 18% per annum. On August 12, 2015, the Company entered into an amendment to the Letter Loan and the promissory note entered into in connection therewith (as amended to date). Pursuant to the amendment, the maturity date of the Letter Loan and the promissory note, which was August 13, 2015, was extended to September 13, 2015, and among other things, we also agreed to reprice the exercise price of the outstanding warrants to purchase 11,195 shares of common stock held by Robertson Global Credit, LLC, the administrator of the loan, to $0.01 per share (from $33.75 per share prior to the amendment). Notwithstanding the change in the maturity date of the Letter Loan and promissory note, the lender did not waive any past events of default by us under the Letter Loan and retained the right to pursue any and all remedies for those defaults at any time. We are in discussions with the lender regarding a potential restructuring or extension of the Letter Loan, and the lender has not provided us any notice of their intent to demand immediate repayment of the amounts owed or to enforce their security interests associated therewith. Therefore, we are hopeful that we and the lender will be able to reach mutually agreeable terms on a restructuring of the debt subsequent to the date of this report. In the event the lender seeks the immediate repayment of the debt (which is currently in default), which they have the right to do at any time, we will be forced to sell assets to raise additional funds and may be forced to seek bankruptcy protection. Additionally, because we are currently in default of the debt, the lender can at any time, subject to the terms of the Letter Loan, as amended, foreclose on our assets, pursuant to its security interest over substantially all of our assets.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Jun. 30, 2015
Property and Equipment
Schedule of net capitalized costs being amortized	All of Lucas’s oil and gas properties are located in the United States. Below are the components of Lucas’s oil and gas properties recorded at: June 30, March 31, Proved leasehold costs $ 10,297,216 $ 11,062,137 Costs of wells and development 37,523,992 37,520,061 Capitalized asset retirement costs 717,337 717,337 Total oil and gas properties 48,538,545 49,299,535 Accumulated depreciation and depletion (12,561,767 ) (12,336,704 ) Net capitalized costs $ 35,976,778 $ 36,962,831

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	3 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Schedule of reconciliation of long-term legal obligations	The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the retirement of oil and gas property and equipment for the three-month period ended June 30, 2015. Lucas does not have short-term asset retirement obligations as of June 30, 2015. Carrying amount at beginning of period - March 31, 2015 $ 1,051,694 Accretion 31,500 Carrying amount at end of period - June 30, 2015 $ 1,083,194

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Schedule of common stock activity	The following summarizes Lucas’s common stock activity during the three-month period ended June 30, 2015: Common Shares Amount (a) Per Share Issued Shares Treasury Outstanding Balance at March 31, 2015 1,402,297 (1,476 ) 1,400,821 Share-Based Compensation $ 19,363 $ 5.25 3,689 — 3,689 Balance at June 30, 2015 1,405,986 (1,476 ) 1,404,510
Schedule of outstanding warrants	The following is a summary of the Company’s outstanding warrants at June 30, 2015: Warrants Exercise Expiration Intrinsic Value Outstanding Price ($) Date at June 30, 2015 100,422 (1) 71.50 July 4, 2016 — 41,300 (2) 57.50 October 18, 2017 — 11,000 (3) 37.50 April 4, 2018 — 2,000 (4) 37.50 May 31, 2018 — 11,195 (5) 33.75 August 13, 2018 — 66,668 (6) 25.00 April 21, 2019 — 232,585 $ — (1) Series B Warrants issued in connection with the sale of units in the Company’s unit offering in December 2010. The Series B Warrants became exercisable on July 4, 2011 and will remain exercisable thereafter until July 4, 2016. (2) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017. (3) Warrants issued in connection with the issuance of certain notes in April 2013, or which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018. (4) Warrants issued in connection with the issuance of certain notes in May 2013, for which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018. (5) Warrants issued in connection with the Letter Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until the earlier of (a) August 13, 2018; and (b) three years after the payment in full of the Loan. The exercise price was lowered to $0.01 per share on August 12, 2015. (6) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of remaining terms of options outstanding	The following tabulation summarizes the remaining terms of the options outstanding: Exercise Price ($) Remaining Life (Yrs.) Options Outstanding Options Exercisable 32.00 * 2,000 2,000 51.75 5.3 1,920 1,920 24.50 1.5 3,000 3,000 40.75 2.3 4,000 2,000 43.50 2.3 6,000 6,000 40.25 2.5 2,000 2,000 39.50 2.3 2,000 — 5.50 2.7 4,000 4,000 Total 24,920 20,920

SUPPLEMENTAL CASH FLOW INFORM23

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Information Tables
Schedule of supplemental cash flow information	Net cash paid for interest and income taxes was as follows for the three-month periods ended June 30, 2015 and 2014: Three Months Ended June 30, 2015 2014 Interest $ 73,465 $ 284,058 Income taxes — — Non-cash investing and financing activities for the three-month periods ended June 30, 2015 and 2014 included the following: Three Months Ended June 30, 2015 2014 Accrued capital expenditures included in accounts payable and accrued liabilities $ 610,627 $ 675,820 Extinguishment of note payable in exchange of common stock 212,764 — Extinguishment of note payable in exchange of certain oil and gas properties 387,236 — Issuance of restricted stock for amended loan — 47,250

GENERAL (Details Narrative)

GENERAL (Details Narrative) - 3 months ended Jun. 30, 2015 - shares	Total
General Details Narrative
Description of reverse split values	1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock which was effective on July 15, 2015 (the “Reverse Split”).
Stock splits during period	35,100,000
Reduction in the number of shares	1,400,000

LIQUIDITY AND GOING CONCERN C25

LIQUIDITY AND GOING CONCERN CONSIDERATIONS (Details Narrative) - USD ($)	Aug. 01, 2015	May. 11, 2015	Jun. 30, 2015	Mar. 31, 2015	Jul. 31, 2015	Feb. 26, 2015	Feb. 03, 2015
Current Liabilities			$ 10,434,240	$ 10,282,292
Current Assets			971,957	697,458
Working capital deficit			9,400,000	9,600,000
Decrease in working capital deficit			200,000
Decrease in notes payable				400,000
Subsequent Event [Member] | Earthstone Energy [Member]
Payments for drilling activities	$ 3,400,000
Additional payments for drilling activities in next several months			500,000
Letter of Intent - Victory [Member]
Notes Payable		$ 250,000		350,000		$ 2,000,000	$ 2,000,000
Final payment to be paid on maturity		$ 600,000
Number of shares issued		44,070
Second Amended Letter Loan and Second Amended Note [Member]
Notes Payable			$ 7,300,000	$ 7,300,000
Notes interest rate			18.00%	18.00%
Second Amended Letter Loan and Second Amended Note [Member] | Subsequent Event [Member]
Notes Payable					$ 7,300,000
Notes interest rate					18.00%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative)	Jul. 27, 2015USD ($)a	Jun. 30, 2015USD ($)aN$ / Boe	Jun. 30, 2014$ / Boe	Jun. 25, 2015N	Mar. 31, 2015USD ($)
Amortization expense, per equivalent physical unit of production, per barrel of oil | $ / Boe		31.95	36.34
Gross proceeds oil and natural gas property		$ 555,892
Capitalized lease cost		35,976,778			$ 36,962,831
Security Deposit	$ 5,000
Area of land | a	3,300
Sbulease monthly base rent	$ 5,000
Earthstone Energy [Member]
Gross proceeds oil and natural gas property		$ 347,600
Area of oil and gas properties sold | a		139.04
Percentage of working interest share		20.00%
Capitalized lease cost		$ 142,000
Victory To Earthstone Energy [Member]
Capitalized lease cost		196,000
Earthstone Energy To Lucas [Member]
Capitalized lease cost		$ 54,000
Penn Virginia Corporation [Member]
Number of wells | N		6		5
Oil and gas Property		$ 596,000

PROPERTY AND EQUIPMENT (Detai27

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Components of oil and gas properties recorded at cost
Proved leasehold costs	$ 10,297,216	$ 11,062,137
Costs of wells and development	37,523,992	37,520,061
Capitalized asset retirement costs	717,337	717,337
Total oil & natural gas properties	48,538,545	49,299,535
Accumulated depreciation and depletion	(12,561,767)	(12,336,704)
Net capitalized costs	$ 35,976,778	$ 36,962,831

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details)	3 Months Ended
	Jun. 30, 2015USD ($)
Reconciliation of carrying amounts of asset retirement obligations
Carrying amount at beginning of year	$ 1,051,694
Accretion	31,500
Carrying amount at end of year	$ 1,083,194

NOTE PAYABLE (Details Narrative

NOTE PAYABLE (Details Narrative) - Subsequent Event Type Domain - USD ($)

May. 11, 2015

Feb. 23, 2015

Apr. 29, 2014

Aug. 16, 2013

Aug. 13, 2013

Dec. 31, 2014

Jun. 30, 2015

Jun. 30, 2014

Sep. 13, 2014

Nov. 12, 2014

Jul. 15, 2015

Mar. 31, 2015

Feb. 26, 2015

Feb. 03, 2015

Nov. 24, 2014

Interest expense

$ 73,465

$ 284,058

Amortization of deferred financing costs

77,872

$ 72,719

Letter of Intent - Victory [Member]

Notes Payable

$ 250,000

$ 350,000

$ 2,000,000

$ 2,000,000

Frequency of payment

Monthly

Final payment to be paid on maturity

$ 600,000

Number of shares issued

44,070

Letter Agreement - Ms. Rogers [Member]

Notes Payable

7,265,407

$ 250,000

Notes interest rate

12.00%

Debt maturity date

Sep. 13, 2015

Note discount

5,327

Administrator expenses

$ 50,000

Additional notes payable

$ 211,769

Second Amended Letter Loan and Second Amended Note [Member]

Notes Payable

$ 7,300,000

$ 7,300,000

Notes interest rate

18.00%

18.00%

Deferred financing costs

$ 88,000

Interest expense

1,400,000

Amortization of deferred financing costs

536,000

Letter Loan - Ms. Rogers [Member]

Notes Payable

$ 7,500,000

Notes interest rate

12.00%

Notes interest rate after default

18.00%

Debt maturity date

Aug. 13, 2015

Warrant issued to administrator

11,195

Warrant exercise price (in dollars per share)

$ 33.75

Note discount

$ 127,963

Interest payments on loan

75,000

Escrow deposits, recorded as restricted cash

$ 450,000

Fee description

Administrative Fee

Debt fee frequency

Quarterly

Debt fee

$ 15,000

Deferred financing costs

$ 495,000

Amended Letter Loan [Member]

Note interest rate during period

15.00%

Frequency of payment

Quarterly

Note payments

$ 266,000

Final payment to be paid on maturity

$ 3,870,000

Accumulated amortization of discount on notes

$ 122,636

Amended Letter Loan [Member] | Robertson Global Credit, LLC [Member]

Fee description

Exit fee equal to the advisory fees of approximately $15,000 per quarter that would have been due, had the note remained outstanding through maturity

Debt fee frequency

One-time

Administrator expenses

$ 25,000

Restricted common shares issued to administrator, shares

3,000

Amended Letter Loan [Member] | Lower Range [Member]

Frequency of payment

Monthly

Note payments

$ 205,000

Amended Letter Loan [Member] | Upper Range [Member]

Frequency of payment

Monthly

Note payments

$ 226,000

Notes Payable - April and May Notes [Member]

Repayments of notes payable

$ 3,250,000

Second Amended Loan Agreement - Note [Member]

Notes interest rate after default

15.00%

Frequency of payment

Quarterly

Note payments

$ 266,000

Final payment to be paid on maturity

$ 3,870,000

Second Amended Loan Agreement - Note [Member] | Robertson Global Credit, LLC [Member]

Fee description

Pay $15,000 to Robertson Global Credit, LLC (“Robertson”), the administrator of the Loan, as additional consideration for the modifications.

Debt fee frequency

One-time

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - Jun. 30, 2015 - Series A Convertible Preferred Stock [Member] - shares	Total
Description of preferred stock conversion basis	Each share of the Series A Convertible Preferred Stock is convertible into 40 shares of the Company’s common stock and has no liquidation preference and no maturity date.
Number of preferred stock oustanding	500
Preferred Stock Conversion Ratio	40

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015
Common stock activity
Beginning balance, issued	1,405,986	1,402,297
Beginning balance, outstanding	1,404,510	1,400,821
Beginning balance, treasury stock	(1,476)	(1,476)
Share-Based Compensation, shares	3,689
Share-Based Compensation, value	$ 19,363
Share-Based Compensation, per share	$ 5.25
Ending balance, issued	1,405,986	1,402,297
Ending balance, outstanding	1,404,510	1,400,821
Ending balance, treasury stock	(1,476)	(1,476)
Treasury Stock [Member]
Common stock activity
Beginning balance, treasury stock	(1,476)
Ending balance, treasury stock	(1,476)
Common Stock [Member]
Common stock activity
Beginning balance, issued	1,405,986	1,402,297
Beginning balance, outstanding	1,404,510	1,400,821
Ending balance, issued	1,405,986	1,402,297
Ending balance, outstanding	1,404,510	1,400,821

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - Jun. 30, 2015 - $ / shares		Total
Warrants outstanding		232,585
Warrants - Exercise Price 71.50 [Member]
Warrants outstanding	[1]	100,422
Warrant exercise price		$ 71.50
Warrant Expiration date		Jul. 4, 2016
Warrants - Exercise Price 57.50 [Member]
Warrants outstanding	[2]	41,300
Warrant exercise price		$ 57.50
Warrant Expiration date		Oct. 18, 2017
Warrants - Exercise Price 37.50 [Member]
Warrants outstanding	[3]	11,000
Warrant exercise price		$ 37.50
Warrant Expiration date		Apr. 4, 2018
Warrants - Exercise Price 37.50 [Member]
Warrants outstanding	[4]	2,000
Warrant exercise price		$ 37.50
Warrant Expiration date		May 31, 2018
Warrants - Exercise Price 33.75 [Member]
Warrants outstanding	[5]	11,195
Warrant exercise price		$ 33.75
Warrant Expiration date		Aug. 13, 2018
Warrants - Exercise Price 25.00 [Member]
Warrants outstanding	[6]	66,668
Warrant exercise price		$ 25
Warrant Expiration date		Apr. 21, 2019
[1]	Series B Warrants issued in connection with the sale of units in the Company's unit offering in December 2010. The Series B Warrants became exercisable on July 4, 2011 and will remain exercisable thereafter until July 4, 2016.
[2]	Warrants issued in connection with the sale of units in the Company's unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017.
[3]	Warrants issued in connection with the issuance of certain notes in April 2013, or which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018.
[4]	Warrants issued in connection with the issuance of certain notes in May 2013, for which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018.
[5]	Warrants issued in connection with the Letter Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until the earlier of (a) August 13, 2018; and (b) three years after the payment in full of the Loan. The exercise price was lowered to $0.01 per share on August 12, 2015.
[6]	Warrants issued in connection with the sale of units in the Company's unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019.

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Details Narrative
Number of common stock issued	3,689
Common stock aggregate grant fair	$ 19,363
Additional number of common stock issued	5,621
Common stock additional aggregate grant fair value	$ 19,673
Number of stock option outstanding	24,920	36,579
Weighted Average Grant Price	$ 33.80	$ 34.75
Stock option compensation expense	$ 21,111	$ 40,689
Unrecognized compensation expense - nonvested options	$ 70,597
Unrecognized compensation expense period	1 year 7 months 6 days
Numbers of shares available for issuance	56,916

SHARE-BASED COMPENSATION (Det34

SHARE-BASED COMPENSATION (Details) - 3 months ended Jun. 30, 2015 - $ / shares	Total
Remaining terms of the options outstanding
Options outstanding	24,920
Options exercisable	20,920
Stock Options Exercise Price 32.00 [Member]
Remaining terms of the options outstanding
Exercise price	$ 32
Options outstanding	2,000
Options exercisable	2,000
Stock Options Exercise Price 51.75 [Member]
Remaining terms of the options outstanding
Exercise price	$ 51.75
Remaining Life	5 years 3 months 18 days
Options outstanding	1,920
Options exercisable	1,920
Stock Options Exercise Price 24.50 [Member]
Remaining terms of the options outstanding
Exercise price	$ 24.50
Remaining Life	1 year 6 months
Options outstanding	3,000
Options exercisable	3,000
Stock Options Exercise Price 40.75 [Member]
Remaining terms of the options outstanding
Exercise price	$ 40.75
Remaining Life	2 years 3 months 18 days
Options outstanding	4,000
Options exercisable	2,000
Stock Options Exercise Price 43.50 [Member]
Remaining terms of the options outstanding
Exercise price	$ 43.50
Remaining Life	2 years 3 months 18 days
Options outstanding	6,000
Options exercisable	6,000
Stock Options Exercise Price 40.25 [Member]
Remaining terms of the options outstanding
Exercise price	$ 40.25
Remaining Life	2 years 6 months
Options outstanding	2,000
Options exercisable	2,000
Stock Options Exercise Price 39.50 [Member]
Remaining terms of the options outstanding
Exercise price	$ 39.50
Remaining Life	2 years 3 months 18 days
Options outstanding	2,000
Stock Options Exercise Price 5.50 [Member]
Remaining terms of the options outstanding
Exercise price	$ 5.50
Remaining Life	2 years 7 months 12 days
Options outstanding	4,000
Options exercisable	4,000

POSTRETIREMENT BENEFITS (Detail

POSTRETIREMENT BENEFITS (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Total costs recognized for defined contribution savings plan	$ 7,375	$ 12,324

SUPPLEMENTAL CASH FLOW INFORM36

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental cash flow information
Interest	$ 73,465	$ 284,058
Noncash Investing and Financing Activities:
Accrued capital expenditures included in accounts payable and accrued liabilities	610,627	675,820
Extinguishment of note payable in exchange of common stock	212,764
Extinguishment of note payable in exchange of certain oil and gas properties	$ 387,236
Issuance of Restricted Stock for Amended Loan		$ 47,250

SETTLEMENT AGREEMENTS (Details

SETTLEMENT AGREEMENTS (Details Narrative) - USD ($)	Jun. 25, 2015	May. 11, 2015	Jun. 30, 2015	Jul. 15, 2015	Mar. 31, 2015	Feb. 26, 2015	Feb. 03, 2015
Description of reverse split values			1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock which was effective on July 15, 2015 (the “Reverse Split”).
Eagle Ford Shale (Earthstone Energy/Oak Valley Resources) [Member]
Settlement received	$ 54,020
Letter of Intent - Victory [Member]
Description of reverse split values	We also agreed to grant Victory piggyback registration rights in connection with the Victory Shares and Victory agreed to leakout terms associated with the Victory Shares, whereby Victory may not sell through a broker (post reverse split values), more than 1,000 of the Victory Shares per day; 5,000 of the Victory Shares per week; and 20,000 of the Victory Shares per month.
Letter of Intent - Victory [Member]
Notes Payable		$ 250,000			$ 350,000	$ 2,000,000	$ 2,000,000
Frequency of payment		Monthly
Final payment to be paid on maturity		$ 600,000
Number of shares issued		44,070
Letter Agreement - Ms. Rogers [Member]
Settlement received				$ 253,750
Notes Payable			$ 7,265,407	$ 250,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 15, 2015	Jul. 31, 2015	Jun. 30, 2015	May. 11, 2015	Mar. 31, 2015	Feb. 26, 2015	Feb. 03, 2015
Description of reverse split values			1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock which was effective on July 15, 2015 (the “Reverse Split”).
Stock splits during period			35,100,000
Reduction in the number of shares			1,400,000
Letter of Intent - Victory [Member]
Notes Payable				$ 250,000	$ 350,000	$ 2,000,000	$ 2,000,000
Second Amended Letter Loan and Second Amended Note [Member]
Notes Payable			$ 7,300,000		$ 7,300,000
Notes interest rate			18.00%		18.00%
Subsequent Event [Member]
Description of reverse split values	1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock which was effective on July 15, 2015 (the “Reverse Split”).
Stock splits during period	36,354,973
Reduction in the number of shares	1,454,261
Subsequent Event [Member] | Letter of Intent - Victory [Member]
Interest payments on loan		$ 73,000
Subsequent Event [Member] | Second Amended Letter Loan and Second Amended Note [Member]
Notes Payable		$ 7,300,000
Notes interest rate		18.00%