Press Releases

HOUSTON, Aug. 18, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI), an independent oil and gas company (the "Company"), today announced that the Board of Directors of the Company has approved a temporary adjustment to the Exercise Price for its outstanding warrants issued in connection with a private equity placement completed during the 2nd fiscal quarter ended September 2007 (the "2007 Warrants"). Each 2007 Warrant provides the holder the right to acquire one share of common stock at $8.00 per share, and for a period of 60 days (the "Re-Pricing Period") the Exercise Price for a 2007 Warrant has been adjusted to $1.00 per share.

The 2007 Warrants were originally issued as part of a unit that consisted of one share of common stock and one common share purchase warrant. Upon a 4 to 1 reverse split effected by the Company, the warrant Exercise Price was adjusted to $8.00 per share and the number of warrants issued was reduced to approximately 2.8 million. Lucas issued warrants to the placement agents in the offering and total 2007 Warrants currently outstanding are approximately 3.0 million.

Specific temporary revisions made to the terms and conditions of the 2007 Warrants are as follows:

 * The Exercise Price during the Re-Pricing Period shall be $1.00 per
   share of common stock;
 * During the Re-Pricing Period, the warrant provision permitting
   "cashless exercise" is suspended, and not available to the warrant
   holder; and
 * The Re-Pricing Period will be the period September 1, 2009 until
   October 30, 2009.

Should all 2007 Warrants be exercised by warrant holders during the Re-Pricing Period, the Company will raise approximately $3.0 million in cash proceeds that will be used primarily to progress Phase II of its 2009-2010 capital program, and used to reduce outstanding borrowings on its credit facility.

William A. Sawyer, President and CEO of Lucas Energy, said, "We believe that this is the correct action to take as the shareholders involved in the 2007 private placement have been very supportive, and we wanted to provide them the opportunity to participate in our current financing initiatives on what we believe to be advantageous terms. By Re-Pricing the 2007 Warrants, we can grow the value of our portfolio of oil and gas properties."

About Lucas Energy

Lucas Energy, Inc. (AMEX:LEI) is a Texas based independent crude oil and gas company that indentifies, evaluates and acquires oil and gas property interests, primarily in the Austin Chalk formation of South Texas, that are underperforming or have been shut-in or plugged and abandoned. These properties are revitalized by undertaking extensive re-entry and work-over procedures, including clean-up, repairs and treatments of the existing well bores and lateral extensions, as well as extending or drilling new laterals into previously nonproducing areas of the formation. By utilizing tight field and operating management controls, together with having a comprehensive understanding of the production characteristics of the Austin Chalk, the Company believes that it can increase reserves, improve production and maximize cash flow while avoiding most of the high risks of typical exploration projects.

The Company's headquarters are located at 6800 West Loop South, Suite 415, Bellaire (a suburb of Houston), Texas 77401.

The Lucas Energy logo is available at https://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 Company's complete filings with the Securities and Exchange Commission are available at http://www.sec.gov

CONTACT:  Lucas Energy, Inc.
          Michael Brette,J.D.
            mikebrette@gmail.com
          Mike King
            mike@princetonresearch.com
          (713) 528-1881