HOUSTON, Dec. 20, 2006 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S. based independent oil and gas company today announced that it has acquired six oil wells located in Gonzalez, Texas from privately held Delphic Oil and Gas, LLC. The Delphic assets represent 4 properties with a total of 1172.29 acres. The properties hold oil and gas producing wells in the same area as another Lucas acquisition of 2,000 net acres with nine producing wells which were acquired in August, 2006.
The current purchase of the Delphic assets represents a total of six wells: four of which are operating and two additional wells which are currently shut in awaiting workover. The properties also contain additional acreage with offset drilling locations. These assets will immediately impact the company's profitability and be accretive to earnings.
The terms of the transaction included all assets of Delphic Oil and Gas in consideration of 1.6 million restricted common shares of Lucas Energy Inc., valued at $2.65 a share. Details are available on the Company's current report filed on Form 8-K, with the SEC which can be viewed at: http://www.sec.gov.
James J. Cerna, Chief Executive Officer of Lucas Energy, stated, "The purchase of the Delphic assets worked well because the properties are in the heart of our operation and will be accretive to the Company's bottom-line earnings. This acquisition also affirms and strengthens our business model, because it fulfills a number of mission critical benchmarks we require when considering an investment: profitability, future production value, and upside potential. The Lucas strategy calls for growth through timely and accretive acquisitions as well as growth through its own proprietary revitalization methodologies."
The Delphic transaction was completed after careful analysis and testing of the wells and properties.
Lucas Energy, Inc. (OTCBB:LUCE) (www.lucasenergy.com) is an independent oil and gas company building a diversified portfolio of valuable oil and gas assets in the United States. The Company reported revenues improved by 406% to $548,421 for the six-month period ended September 30, 2006, as compared to revenues $108,401 for the same six-month period of 2005, record net income increased 684% to $183,471 for the six-months ended September 30, 2006 up from $23,395 for the six-months ended September 30, 2005. 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. The Company's headquarters are located at 3000 Richmond Avenue, Suite 400, Houston, Texas 77040.
"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.