Lucas Energy Acquires 498 Acre, 5 Well Property
HOUSTON, March 1, 2007 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S.-based independent oil and gas company, today announced that it has completed its ninth acquisition in the last seven months with the lease of 498 acres of land in Gonzales County, Texas.
Lucas Energy, Inc. has leased 498.27 acres of land in an oil, gas and mineral lease from the Griffin Family Trust and George G. Griffin, Jr. The acreage is in the G. W. Barnett Survey, A-110, Gonzales County, Texas. There are three active, but shut in well bores, and two plugged wells on the lease. The lease had produced more than 300,000 bbls of oil until it was abandoned in 1998. The size of the lease is significant in that Lucas Energy, Inc. will be able to consider laterals on a lease that has only had production from straight hole wells. The new Griffin lease is just north of the recently acquired Barnett lease in the same survey. Lucas Energy, Inc. also has two wells on another lease from the same family.
Lucas plans to boost production immediately by revitalizing the three current active wells. The Company believes that there are significant proved undeveloped reserves in the upper cretaceous zones on this property. The addition of these proved reserves will be included in the annual report (10k) for the fiscal year ended March 31, 2007.
This acquisition follows a succession of new properties which over the last seven months represents approximately 5,400+ acres in leased assets in the Gonzales region.
Lucas Energy, Inc. (OTCBB:LUCE) (www.lucasenergy.com) is an independent 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 business model calls for the company to increase its asset base and cash flow through acquisition while minimizing the risks of traditional exploration projects. For more information, visit http://www.lucasenergy.com. The Company's headquarters are located at 3000 Richmond Avenue, Suite 400, Houston, Texas 77040.
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," "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-QSB for the quarterly period ended December 31, 2006 and Form 8-K dated February 21, 2007 available by contacting us. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
CONTACT: Lucas Energy, Inc. Corporate: James Cerna, Jr., CEO (713) 528-1881 Anthem Communications Media: Anthony DiMaio (917) 449-1177
Released March 1, 2007