NEW YORK, Feb. 22, 2010 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (AMEX:LEI), a Houston, Texas based independent oil and gas company, and Terra Energy & Resource Technologies, Inc. (OTCBB:TEGR), a natural resource exploration services technology company, are initiating three projects for development of oil and gas properties in Atascosa County, Texas, utilizing the application of Terra's innovative technologies on the Lucas Energy licensed territories.
Lucas Energy accepted the proposal of Terra Energy & Resource Technologies for the application of its STeP and NAGS technologies, according to which Terra will survey three separate leases in Texas. Pursuant to this joint venture, Terra will provide its technology services to Lucas Energy on a substantially reduced fee basis, and Lucas Energy is to assign to Terra a 5% free-carried-interest in connection with the oil and gas production from any additional recompletions, or new drilling from the three properties, and grant Terra up to 30% in non-promoted participation interest.
"Our relationship is developing quickly into a synergistic partnership, where both companies make concessions for mutual benefit and success in oil & gas development and production," said Mr. William Sawyer, Lucas Energy's Chief Executive Officer. "The Lucas Energy mission is to provide its shareholders with the lowest drilling risk possible. Terra Energy & Resource Technologies helps us achieve substantial risk reduction through its cutting-edge technologies."
"While we celebrate the commercial potential of this specific cooperative venture and the relationships that are forming as a result, we are even more pleased that a widely respected industry player such as Lucas Energy is recognizing Terra's value," said Dmitry Vilbaum, Terra Energy & Resource Technologies' Chief Executive Officer. "The terms of the agreement are structured so that Terra not only receives service fees, it will also receive a carried interest and the chance to leverage the intelligence it gathers and participate in prospects on a non-promoted basis if they appear favorable. The project is set to start within weeks and if it lives up to its promise, will be extremely positive for Terra share holders."
Safe Harbor for Forward-looking Statements
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause the Company's expectations and beliefs about its operations, its plans to acquire interests in exploration properties or technologies, plans to drill or drilling results to fail to materialize, including, but not limited to: competition for new acquisitions; availability of capital; unfavorable geologic conditions; prevailing prices for oil, natural gas and other natural resources; and general regional economic conditions.