Lucas Energy Inc. (NYSE: LEI) announced Feb. 2 that the company has defaulted on debt and is weighing its options.

The Houston-based company said it failed to make a required principal payment that was due on Dec. 13 under the terms of the amended loan agreement. Specifically, on Jan. 26, the company received notice from a representative of its lender that it had defaulted on a payment.

Consequently, the amount owed under the loan agreement of about $7.7 million will accrue at a default interest rate of 18% per annum. No further action has been taken by the company's lender, who has also waived a required interest payment, which the company also failed to pay, that was due in January.

The lender has also reserved the right to enter into an amended agreement with Lucas at any time or to enforce other rights under the agreement as a result of such default.

The plunge in crude oil prices has led the company to reconsider all alternatives, said Anthony C. Schnur, the CEO of Lucas, in a statement.

"We are actively and aggressively pursuing options to secure funding through a corporate combination or project financing arrangement," he said. "We believe we have made significant progress toward establishing a definitive path forward."

He said Lucas has slashed its general and administrative and operating expenses over the past six weeks by roughly $160,000 per month, or about $2 million per year The company's production has been maintained at current levels considering natural declines.

The company continues to anticipate drilling on its Eagle Ford Shale acreage in Karnes County, Texas, as soon as its able to finalize alternative financing arrangements, he said.

"Management remains confident that a suitable solution will be agreed upon in the coming weeks and resulting public announcement at the appropriate time," he said.