HOUSTON, Oct. 16, 2007 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S. based independent oil and gas company, is pleased to announce a progress report on its Hagen Ranch No.3 well in Gonzales County, Texas.
Lucas Energy, Inc. has completed drilling a new lateral in the Hagen Ranch No.3 well, southwest of Gonzales, Texas. The old lateral to the northwest was plugged back and the new lateral to the southeast was drilled to a measured depth of 9507 feet. The new lateral is approximately 525 feet out to the southeast from the vertical well bore.
During the drilling of the curve, gas shows were encountered in the Austin Chalk "B" interval. The Austin Chalk "C" interval was the main target and encountered shows immediately. Although the plan was to drill another 1000 feet, it was felt that enough fracturing was encountered at the current TD (total depth) for a successful well. The Austin Chalk produces from fractures and not matrix porosity. Based on the seismic data, Lucas Energy, Inc. still has additional fractures which may be drilled in the same horizontal at a later date.
The SITP (shut in tubing pressure) of the well was 950 psig with a column of fluid in the well. A bottom hole pressure test indicated that the fractures encountered had virgin pressure. This would indicate a virgin reservoir with no depletion.
After flowing the well to the tanks for a few days to clean up any drilling fluids, the well will be put on pump and tested.
It is our opinion that the well test will show this to be a successful operation.
The Hagen Ranch No.3 well was acquired in 2006 and is positioned on a 1330 acre lease which has room for at least two additional wells.
About Lucas Energy
Lucas Energy, Inc. (OTCBB:LUCE) 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", "opinion" 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.