Investor Relations
HOUSTON, Jan. 15, 2008 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S. based independent oil and gas company, today announced the results of an independent study of the Company's oil and gas reserves performed by Forrest A. Garb and Associates, Inc., an independent licensed petroleum engineering firm based in Dallas.
The report estimates the undiscounted future net revenue (FNR) from these reserves at $92,674,580, or a discounted PV-10 of $54,555,200, which is commonly known as the SEC PV-10 figure. This equates to $1.34 per share in discounted (PV-10) Proved Reserves.
The reserve report, which is based on interests owned by Lucas Energy, Inc. in certain oil and gas properties located in Gonzales, Baylor, Karnes, and Wilson counties, Texas.
The total net reserves are 1,506,004 barrels of crude oil and 36.39 MMcf of natural gas, which breaks down as follows:
Oil (MBbl) Gas (MMcf)
PROVED DEVELOPED PRODUCING 229.64 --
PROVED NONPRODUCING 76.69 36.39
PROVED UNDEVELOPED (PUD) 1,119.70 --
TOTAL PROVED 1,506.04 36.39
The report did not include reserves attributed to the new wells drilled as part of the 2008 drilling program, or new properties acquired since April 1, 2007. The reserve report did not take into account any behind pipe, probable, or possible reserves that Lucas Energy may hold.
James J. Cerna, Chief Executive Officer of Lucas Energy, stated, "This gives our shareholders a better view of the Company's current assets and future net revenues. We will continue to build out our production and reserves through suitable acquisitions and drilling activities, while maintaining a low operating cost structure."
William A. Sawyer, Chief Operations Officer of Lucas Energy, said, "We are very pleased with this new independent report. Our acquisition of 1,000+ acres, 8 new wells, and new laterals drilled over the past few months, not included in the report, will surely add additional reserves to this calculation."
Complete financial results are available on at http://www.sec.gov.
Lucas Energy, Inc. (OTCBB:LUCE) (www.lucasenergy.com) 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 3000 Richmond Avenue, Suite 400, Houston, Texas 77098.
The Lucas Energy logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4192
The statements in this press release regarding any implied or perceived benefits from existing of oil and gas field properties, actual reserves and revenues to be derived from the reserves, plans to drill additional oil and gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
The reserve values stated in the December 31, 2007 report are estimates and should not be interpreted as being exact quantities. They may or may not be actually recovered and the revenues stated in the report may be more or less than what will ultimately be recovered. While the reserve estimates presented in the report were believed reasonable at December 31, 2007, several factors may lead to a future revision of the reserve estimates presented in the report, including general economics, the Company's operations and reservoir performance.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release such as "producing," "production," "discovery," "commercial viability," and "reserves" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-KSB for the year ended March 31, 2007 available by contacting Lucas Energy. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
CONTACT: Lucas Energy, Inc.
Corporate:
James Cerna, Jr.
713-528-1881
Media:
Richard Angle
866-513-5823 (LUCE)