HOUSTON, June 17, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE:LEI) an independent oil and gas company based in Houston, Texas, today announced the implementation of its Summer 2009 workover program.
The crude oil price volatility over the past year has played havoc with everyone's budgeting. The strengthening of crude oil prices over the past few months has given encouragement to planning and evaluation of future workover opportunities. Lucas Energy, Inc. saw oil prices move up to over $54 per bbl in the Month of May 2009, a steady increase since the annual low of $32 per bbl in February 2009.
As a result of the steady increase in oil prices, Lucas Energy, Inc. has commenced its Summer 2009 workover program which is expected to increase its production from currently active wells that are operated by the Company. Lucas is targeting wells which could increase the current monthly production by 20-30% in the near term.
Lucas Energy, Inc. operates 34 wells in the Gonzales County, Texas area, of which 25 wells are currently producing. All but one of the wells are completed in, and producing from the Austin Chalk formation. Of these 24 wells in the Austin Chalk formation, 15 are horizontal wells. The one well not completed in the Austin Chalk formation is a straight hole well in the Buda formation.
Mr. William A. Sawyer, President and CEO of Lucas Energy, said, "The strengthening of oil prices is very timely, and gives us the opportunity to increase oil production in the second quarter of our fiscal year 2009-10".
About Lucas Energy
Lucas Energy, Inc. (NYSE:LEI) is a Houston, Texas based independent crude oil and gas company that identifies, evaluates and acquires leasehold property interests, primarily in the Austin Chalk formation of South Texas, Southeast of San Antonio, that are underperforming or have been shut-in or plugged and abandoned. These properties are then revitalized by undertaking extensive re-entry and work-over procedures, including clean-up, repairs and treatments of the existing well bores and lateral extensions, as well as extending or drilling new laterals into previously nonproducing areas of the formation. By utilizing tight field and operating management controls, together with having a comprehensive understanding of the production characteristics of the Austin Chalk, the Company believes that it can increase reserves, improve production and maximize cash flow while avoiding most of the high risks of typical exploration projects.
The Company's headquarters are located at 6800 West Loop South, Suite 415, Bellaire (a suburb of Houston), 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 Company's complete filings with the Securities and Exchange Commission are available at http://www.sec.gov .