HOUSTON, May 13, 2008 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (AMEX:LEI), a U.S. based independent oil and gas company, today announced oil production figures for the fourth quarter ended March 31, 2008.
The Company produced 17,710 bbl for the quarter ended March 31, 2008 compared to 10,298 bbl in the year-ago period, an increase of 72%. Production in March 2008 hit an all-time monthly high of 7,618 bbl compared to 3,437 bbl produced in March 2007, for an increase of 121%. The production increases reflect the Company's ability to acquire and revitalize underperforming oil assets and increases in oil volumes as a result of its lateral drilling program. During the quarter, average gross margin increased 8.9% to 90% compared to an average of 81.1% gross margin in the year-ago period. The average commodity prices received by Lucas Energy during the three months ended March 31, 2008 increased 57% to $97.05 compared to an average of $61.75 during the same period last year.
"The acceleration of our oil production, an extraordinary escalation in oil prices, and the high level of operating leverage in our business is spurring record level financial performance, at the top- and bottom-lines," said James Cerna, Chief Executive Officer and Chairman of Lucas Energy, Inc. "We currently expect the commodity pricing environment to remain at a relative high and we are well-positioned to incrementally add to our revenue stream, cash flows, and profitability for the foreseeable future."
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.