HOUSTON, Sept. 20, 2007 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S.-based independent oil and gas company, today announced the drilling of a new horizontal leg in its Hagen Ranch No.3 well, located in the prolific Austin Chalk formation. The well has already produced more than 12,000 bbls of oil from a previous horizontal. It is expected that the lateral will be kicked off within the next 24 hours.
The Hagen Ranch No.3 well was acquired in 2006 and is located in Gonzales County, Texas. The well sits on a 1330 acre lease which has room for at least two additional wells. Currently, a 24-hour workover rig is on the location and the downhole directional motor and bit are being run into the hole. The old horizontal hole has been plugged back in preparation to drill a new horizontal hole in the opposite direction.
"With oil hitting new highs, we are pleased to start our first horizontal of our fiscal 2008 drilling program. We will continue our efforts to increase production," stated James Cerna Jr., CEO of Lucas Energy Inc.
The objective of this horizontal drilling program is to exploit the multiple pay zones and extend oilfield boundaries. Wells in the Austin Chalk are drilled with a horizontal leg in order to contact the fractures which contain trapped oil. Fractures are the main source of production in the Austin Chalk formation.
About 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.
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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.