HOUSTON, Aug. 31, 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 that effective August 8, 2006, the Company has acquired nine oil and gas properties located in the Gonzales and Karnes counties of Texas, from Wilson Oil & Gas of Texas. The properties are comprised of over 2,000 net producing acres, with nine producing wells and several new well locations. Lucas acquired the properties through a $2.2 million debt financing led by Phoenix Capital Opportunity Fund. In addition, the seller received 220,000 restricted shares of Lucas Energy's common stock valued at $2.50 per share. Additional details are available on Form 8-K at http://www.sec.gov.
James J. Cerna, Chief Executive Officer of Lucas Energy, stated, "We are very excited to close on this major acquisition, which will be immediately accretive to earnings. While nine wells are currently producing, using our advanced technologies and revitalization strategy, we will substantially increase the wells' existing production rates, delivering a strong opportunity for upside. We also plan to commence drilling on several favorable new drilling locations this year. With this acquisition alone, we are pleased to report we are on track to increase total earnings in 2006 over 2005."
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. This press release speaks as of the date first set forth above and 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 to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.