Lucas Energy Acquires Gonzales-Austin Chalk Acreage Contiguous to its Existing Properties
Lucas Energy (http://www.lucasenergy.com), Inc. (OTCBB: LUCE), a U.S.-based independent oil and gas (http://www.lucasenergy.com) company, today announced that it has completed its eighth acquisition in the last six months with the lease of 411 acres of land in Gonzales County, Texas (http://www.lucasenergy.com).
The lease is for two tracts of property that have two shut-in wells, No. 3 and No. 1. The land is contiguous to the company's "RVS" property. These wells historically have produced 75,000 barrels of oil and 135,000 barrels of oil, respectively. The Company is targeting to have at least one of the wells back online and producing within the next 90 days. The wells have been shut-in since 2001 with little attempt to recondition them. This acquisition provides Lucas Energy with two important tracts in an area which has demonstrated great potential and access to untapped crude oil reserves.
Lucas (http://www.lucasenergy.com) plans to boost production within the current well bores through drilling, redevelopment, stimulation and well bore optimization. Though the Company did not release an estimated value of the reserves for the properties, the historical data offers an optimistic horizon for potential production scales.
This acquisition follows a succession of new properties which over the last six months represents approximately 5,000+ acres in leased assets in the Gonzales-Austin Chalk region.
"The Company's business model calls for a systematic plan to build a strategic property portfolio with high production and profitability. Lucas Energy is committed to leveraging its acquisition assets to create substantial reserves which could materially increase future production and cash flow,"said James Cerna (http://www.lucasenergy.com), Lucas Energy CEO.
The complete financial results for the first fiscal quarter ended September 30, 2006 are available on Form 10-QSB at http://www.sec.gov.
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 (http://www.lucasenergy.com) 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.
Optimized by Newsforce
Source: Lucas Energy, Inc.
Released January 31, 2007