HOUSTON, May 6, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) ("the Company"), an independent oil and gas producer based in Houston, Texas, provides an update on crude oil and natural gas production and pricing.
Crude Oil
The management of Lucas Energy, Inc. is pleased to announce a record year for production from its wells. During the fiscal year ending March 31, 2009, the Company produced 52,585 barrels of oil from its oil wells in the Austin Chalk trend, primarily in Gonzales County, Texas. This was a 7% increase over the prior fiscal year. Gross production from Lucas operated wells during its third quarter of the 2008-09 fiscal year averaged 143 BOPD (Barrels of oil per day). The fourth fiscal quarter production was slightly lower at 127 BOPD due to maintenance, soapy water treatments, and the conversion of gas engine pumping units to electric motors. The new fiscal year is already starting off well with production averaging 138 BOPD to date for April 2009. Lucas owns 100% working interest in all but one of its operated wells.
Oil Prices
Posted oil prices were at a low in February 2009 falling to $36.16 per bbl for West Texas Intermediate. Lucas Energy, Inc. sells to two purchasers and historically in 2009 has received slightly less than the posted price from one purchaser and about $3.00 per barrel less from the other purchaser. The posted price for March 2009 was $44.86 per bbl or $8.70 per barrel (24%) improvement over February 2009 prices. The posted price for April is approximately $2.50 per barrel higher than March 2009. Based on the Nymex forward price curve, expected prices to be realized by the Company in the next few months should be higher than the March 2009 price.
Natural Gas
Casinghead natural gas production is not a major source of revenues for Lucas Energy, Inc. but continues to increase. For the third quarter of the 2008-09 fiscal year, the Company sold 2,122 MCF (thousand cubic feet) of gas. For the fourth quarter of the 2008-09 fiscal year, gas sales were 2,291 MCF. Most notable was the increase in March 2009 which accounted for almost half of the production for the last quarter of the fiscal year.
About Lucas Energy
Lucas Energy, Inc. (NYSE Amex:LEI) is an independent crude oil and gas company building a diversified portfolio of 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 limiting the risk typically associated with traditional exploration projects. The Company's headquarters are located at 6800 West Loop South, Suite 415, Bellaire, Texas 77401.
The Lucas Energy logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4192
Forward-Looking Statement
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. The complete filing is available at http://www.sec.gov.