HOUSTON, Aug. 30, 2007 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S. based independent oil and gas company, today announced it has begun its planned FY2008 drilling program. The company has under contract three (3) rigs in Gonzales County, Texas to carry out its workover and new lateral program. One rig is employed in the plug back of old laterals in preparation for the new laterals to be drilled. One rig is reconditioning wells for further evaluation of leases. The third rig is a 24-hour rig that will be used in the drilling of the new horizontals.
Lucas Energy, Inc. has plugged back the old lateral in the Hagen Ranch No.3 well in preparation of drilling a new horizontal leg (lateral) in the opposite direction of the current lateral. The next step will be to drill a straight hole to run an open hole well log of the Austin Chalk prior to commencing the new lateral.
"This begins the second phase of growth for Lucas Energy. We have committed to swiftly deploy the capital raised in our recent $12m offering and are aggressively doing just that," said James Cerna, Jr., CEO of Lucas Energy Inc.
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.
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 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.