HOUSTON, March 12, 2008 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (AMEX:LEI), a U.S. based independent oil and gas company, today announced that the G.G. Griffin No. 5 well, which is located south of Wrightsboro, Texas, in Gonzales County, commenced production on February 11, 2008 as a result of rework activities. The well initially tested at 20 BOPD and 33 BWPD and has not yet been stimulated. Generally, Lucas Energy, Inc. waits to assess a newly renovated well's production for several months prior to stimulation.
The well was originally drilled in 1981 and completed as a straight hole in the Austin Chalk formation. It is part of a lease in which Lucas Energy acquired almost 500 acres of land in oil, gas and mineral rights from the Griffin Family Trust and George G. Griffin, Jr. in the G. W. Barnett Survey, A-110, Gonzales County, Texas, in March of 2007. The new Griffin acreage is situated just north of the recently acquired Barnett lease in the same survey. There were five wells on the lease that cumulatively produced over 275,000 bbls of oil but two of the wells have been plugged and abandoned. Lucas acquired a new lease from the landowner and cleaned out the well last month. Management believes additionally that there are significant proved undeveloped reserves in the upper cretaceous zones on this property.
William Sawyer, COO of Lucas Energy Inc., commented, "This is the second of two Griffin wells that we have brought on line in less than a year. These rework activities are ongoing but separate from our drilling program to bring 10 wells on line this year. We have made excellent progress in our drilling and rework programs to date, and, production from this well should contribute nicely to our revenue and cash flow streams starting in the current quarter."
About Lucas Energy, Inc.
Lucas Energy, Inc. (AMEX:LEI) 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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Forward-Looking Statements
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.