Lucas Energy Announces Fiscal 2009 Year-End Results, Reports Record Production, Revenue and Proven Reserves

HOUSTON, June 29, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI), a U.S.-based independent oil and gas company, reports the financial results from operations for fiscal year 2009.

For the fiscal years ended March 31, 2009 and 2008, the Company reports:

Financial Highlights


 *   EBITDA from oil and gas operations was $471,471 or $.05 cents a
     share for the year ended March 31, 2009. EBITDA is a non-GAAP
     calculation; a reconciliation to GAAP is included at the end of
     this press release.

 *   Revenues increased to $3,382,060 in the year ended March 31, 2009
     compared to $3,080,668 in the previous year, primarily due to an
     increase in production partially offset by a decrease in price
     received for oil.

 *   Net loss for the year ended March 31, 2009 was $2,099,491 or
     $0.21 cents a share, primarily due to the unrealized loss of
     $2,095,019 (or $1,385,664 after tax) on the company's investments
     in marketable securities.

 *   The recorded cost of oil and gas properties on our balance sheet
     using the full cost method of accounting increased from $18.1
     million at our prior fiscal year end March 31, 2008 to
     approximately $21.1 million as of March 31, 2009.

 *   Shareholders' equity or book value as of March 31, 2009 was
     $18,362,257 or $1.79 a share.

Operational Highlights


 *   Proved oil reserves increased by 24.6% from 1,797,230 barrels at
     March 31, 2008 to 2,238,860 barrels at March 31, 2009.

 *   Oil and gas production increased 15% for the year ending March
     31, 2009 to a record 42,560 barrels of oil equivalent compared to
     37,013 in the prior year ending March 31, 2008. Average price per
     barrel was $80.82 in the year ending March 31, 2009 compared to
     $83.32 for the same period a year ago.

 *   Developed leasehold acreage increased 24.5% to 15,159 acres at
     March 31, 2009 from 12,174 the previous year.

 *   We announced that the lateral extension of the Hagen Ranch No.3
     well which commenced mid-September and was completed in late
     October 2008 with an initial production rate of 175 BOPD and,
     after testing, was producing at a rate of 84 BOPD and 35 MCFPD
     with no water. The initial well bore was drilled to a total depth
     of 9,570 feet and the lateral extended an additional 1,300 feet
     from the well bore.

Corporate Milestones


 *   On October 8, 2008, we entered into a senior secured revolving
     line of credit facility with Houston-based Amegy Bank providing
     an initial borrowing base of $3.0 million, which is
     collateralized with our oil and gas properties.

 *   As a result of the merger between the American Stock Exchange
     (AMEX) and the New York Stock Exchange (NYSE) its common stock
     began trading on the New York Stock Exchange (NYSE Amex).

 *   Elected Fred Hofheinz as Chairman of the Board of Directors. Fred
     Hofheinz is the former mayor of Houston, a well-known business
     man from Texas, and experienced in both oil and gas and real
     estate investments. Mayor Hofheinz has served on the board of
     directors of both public and private oil and gas companies in the
     past.

Management Comments

Mr. William Sawyer, CEO of Lucas Energy, said, "We are pleased with the financial highlights for fiscal year 2008-09. Our production, revenues, and reserves were all up, as was the net acreage under lease and held by production. We are looking forward to the 2009-10 fiscal year and moving the company forward."

Lucas Energy filed its Form 10-K with the Securities and Exchange Commission today which contains all complete details of the results of operations for the fiscal year ended March 31, 2009. Full financial tables are contained at the end of this press release.

About Lucas Energy

Lucas Energy, Inc. (NYSE Amex:LEI) is an independent crude oil and gas company building a diversified portfolio of valuable oil and gas assets in the United States. The company is focused on identifying underperforming oil and gas assets, which are revitalized through a meticulous process of evaluation, application of modern well technology, and stringent management controls. This process allows the company to increase its reserve base and cash flow while significantly reducing the risk of traditional exploration projects. The Company's headquarters are located at 6800 West Loop South, Suite 415, Houston, Texas 77401.

The Lucas Energy logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4192

Forward-Looking Statement

This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Lucas Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors. The complete filing is available at http://www.sec.gov.



                          LUCAS ENERGY, INC.
                      Consolidated Balance Sheets

                                             March 31,     March 31,
                                               2009          2008
                                           ------------  ------------
 CURRENT ASSETS
   Cash                                    $    136,841  $  1,142,386
   Marketable securities                        293,336     2,388,355
   Oil and gas receivable                       138,283       559,886
   Deferred financing costs                     121,606            --
   Other current assets                          57,764        38,849
                                           ------------  ------------
       TOTAL CURRENT ASSETS                     747,830     4,129,476
                                           ------------  ------------

 OIL AND GAS PROPERTIES, FULL COST METHOD
   Properties subject to amortization        22,794,893    18,978,699
   Accumulated depletion, depreciation
    and amortization                         (1,721,580)     (846,470)
                                           ------------  ------------
       OIL AND GAS PROPERTIES, NET           21,073,313    18,132,229

 Property, plant and equipment, net of
  accumulated depreciation of $3,738 and
  $363, respectively                             26,033         2,255

 Deferred financing costs, net of
  amortization of $49,223 and $-0-,
  respectively                                  250,922            --

 Other assets                                    56,828        51,766
                                           ------------  ------------

       TOTAL ASSETS                        $ 22,154,926  $ 22,315,726
                                           ============  ============

 CURRENT LIABILITIES
   Accounts payable - trade                $    808,598  $  1,174,737
   Credit facility borrowings, current
    portion                                     300,000            --
   Accrued expenses                             152,472            --
                                           ------------  ------------

       TOTAL CURRENT LIABILITIES              1,261,070     1,174,737
                                           ------------  ------------

 NON-CURRENT LIABILITIES
   Borrowings on credit facility              2,350,000            --
   Asset retirement obligations                 181,599       141,512
   Deferred tax liabilities                          --       834,126
                                           ------------  ------------

       TOTAL LIABILITIES                      3,792,669     2,150,375
                                           ------------  ------------

 STOCKHOLDERS' EQUITY
   Preferred stock, 10,000,000 shares
    authorized of $0.001 par value, no
    shares issued and outstanding                    --            --
   Common stock, 100,000,000 shares
    authorized of $0.001 par value,
    10,383,388 and 10,346,488 shares
    issued and outstanding, respectively
    at March 31, 2009 and 10,246,189
    shares issued and outstanding at March
    31, 2008                                     10,383        10,246
   Additional paid-in capital                18,864,225    18,518,806
   Treasury stock, at cost                      (49,159)           --
   Retained earnings (accumulated deficit)     (463,192)      407,046
   Accumulated other comprehensive income            --     1,229,253
                                           ------------  ------------

       TOTAL STOCKHOLDERS' EQUITY            18,362,257    20,165,351
                                           ------------  ------------

       TOTAL LIABILITIES AND STOCKHOLDERS'
        EQUITY                             $ 22,154,926  $ 22,315,726
                                           ============  ============




                          Lucas Energy, Inc.
                 Consolidated Statements of Operations

                                          For the Year  For the Year
                                             Ended         Ended
                                            March 31,     March 31,
                                              2009          2008
                                          ------------  ------------

 REVENUES
   Oil and gas revenues                   $  3,382,060  $  3,070,668
   Consulting income                                --        10,000
                                          ------------  ------------
      Total Revenues                         3,382,060     3,080,668

 EXPENSES
   Lease operating expenses                  1,345,928       608,841
   Severance and property taxes                171,688       119,127
   Depreciation, depletion, and
    amortization                               899,949       697,599
   General and administrative                1,594,598     1,597,412
                                          ------------  ------------

      Total Expenses                         4,012,163     3,022,979
                                          ------------  ------------

 INCOME (LOSS) FROM OPERATIONS                (630,103)       57,689

 OTHER INCOME (EXPENSES)
   Unrealized loss on marketable
    securities                              (2,095,019)           --
   Realized loss on marketable securities     (121,273)           --
   Interest income                               1,970       135,479
   Interest expense                            (89,193)     (101,877)
                                          ------------  ------------
      Total Other Income (Expenses)         (2,303,515)       33,602

 NET INCOME BEFORE INCOME TAXES             (2,933,618)       91,291

 INCOME TAX BENEFIT (EXPENSE)                  834,127       (68,689)
                                          ------------  ------------

 NET INCOME (LOSS)                        $ (2,099,491) $     22,602
                                          ============  ============

 UNREALIZED HOLDING GAIN ON MARKETABLE
  SECURITIES, NET OF TAX                            --     1,229,253
                                          ------------  ------------

 COMPREHENSIVE INCOME (LOSS)              $ (2,099,491) $  1,251,855
                                          ============  ============

 INCOME (LOSS) PER SHARE - BASIC AND
  DILUTED                                 $      (0.21) $       0.00
                                          ============  ============

 WEIGHTED AVERAGE NUMBER OF SHARES
  OUTSTANDING:
   BASIC                                    10,237,830     9,313,674
                                          ============  ============
   DILUTED                                  10,237,830    11,177,515
                                          ============  ============

Use of Non-GAAP Financial Measures

Adjusted EBITDA

In evaluating our business, we consider earnings before interest, taxes, depreciation, depletion, amortization, unrealized gains and loss on investments, stock-based compensation expense and accretion of abandonment liability ("Adjusted EBITDA") as a key indicator of financial operating performance and as a measure of the ability to generate cash for operational activities and future capital expenditures. Adjusted EBITDA is not a Generally Accepted Accounting Principle ("GAAP") measure of performance. We use this non-GAAP measure primarily to compare our performance with other companies in the industry that make a similar disclosure and as a measure of our current liquidity. We believe that this measure may also be useful to investors for the same purpose and as an indication of our ability to generate cash flow at a level that can sustain or support our operations and capital investment program. Investors should not consider this measure in isolation or as a substitute for income from operations, or cash flow from operations determined under GAAP, or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not a GAAP measure, it may not necessarily be comparable to similarly titled measures employed by other companies.



                 Reconciliation of Adjusted EBITDA
                 ---------------------------------

                                Year Ended     Year Ended
                                 March 31,      March 31,
                                   2009           2008
                                -----------    -----------

 Net Income (Loss)              $(2,099,491)   $    22,602
    Add Back:
     Interest                        89,193        101,877

     Income Tax Expense
      (Benefit)                    (834,127)        68,689

     Depreciation, Depletion
      and Accretion                 899,949        697,599

     Unrealized Loss on
      Investments                 2,095,019             --

     Stock Based Compensation       320,928        105,000
                                -----------    -----------
 Adjusted EBITDA                $   471,471    $   995,767

Presented below are our actual sales of oil and gas production and average prices realized during the years ended March 31, 2009 and 2008:



                          For the Year    For the Year
                             Ended           Ended        Increase /
                         March 31, 2009  March 31, 2008  (Decrease)
                         --------------  --------------  -----------
 Volumes, net:

 Oil (bbls)                    41,309         36,728          4,581
 Gas (mcf)                      7,505          1,712          5,793
    Total (boe)                42,560         37,013          5,547

 Average price received:

 Oil                       $    80.82     $    83.32     $    (2.50)
 Gas                       $     5.77     $     6.06     $    (0.29)
 Total Revenues:           $3,382,060     $3,080,668     $  301,392
CONTACT:  Lucas Energy, Inc.
          Mike Brette, Investor Relations
          William Sawyer, CEO
          (713) 528-1881