Lucas Energy Reports Record Profits and Revenues in the First Fiscal Quarter; Achieves Fifth Consecutive Quarter of Profitability


HOUSTON, Aug. 16, 2006 (PRIMEZONE) -- Lucas Energy, Inc. (OTCBB:LUCE), an independent oil and gas company building a diversified portfolio of valuable assets in the United States, today announced its financial results for the first fiscal quarter ended June 30, 2006. Full details are available on Form 10-QSB at http://www.sec.gov.

For the three-month period ended June 30, 2006, the Company reported revenues of $138,493 compared to $13,698 during the same period of 2005. The first fiscal quarter of 2005 is defined as the period from the Company's inception on April 6, 2005 through June 30, 2005. The Company recorded a gross profit of $77,954 for the first fiscal quarter ended June 30, 2006 compared to $9,482 recorded in the first fiscal quarter of 2005.

The Company reported net income of $88,400 for the three months ended June 30, 2006 compared to $2,162 for the three months ended June 30, 2005. This increase is attributed to the Company's acquisition of additional oil properties prior to June 30, 2006. As of June 30, 2006, the Company's cash balance was $523,584.

James J. Cerna, Chief Executive Officer of Lucas Energy, stated, "We are extremely pleased with our record operating results for the first quarter of fiscal 2007, which represents our fifth consecutive quarter of profitability. Our management team has worked tirelessly in identifying wells that are shut-in and under-performing, yet carry strong upside potential given our technological resources and guidance. This unique strategy enables us to produce strong cash-flowing assets, keep overhead costs low, and achieve higher than average rates of return compared to traditional E&P concerns."

Cerna concluded, "The results of our revitalization and acquisition strategy is just beginning to show our exciting growth potential. Our profit for the month of July 2006 has already surpassed the results of the entire previous quarter. We are continuing to add producing assets and will continue to ramp up our earnings beginning in the second fiscal quarter."

About Lucas Energy

Lucas Energy, Inc. is an independent 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 asset base and cash flow, while significantly reducing the risk of traditional exploration projects. Lucas Energy's financial structure allows it to minimize the high overhead of traditional E&P companies. For more information, visit http://www.lucasenergy.com.

"Safe-Harbor" Statement Under the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Lucas Energy to differ materially from those implied or expressed by such forward-looking statements. Lucas Energy assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products, inability of potential customers to pay, and political and economic risks inherent in international trade.



            

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