HOUSTON, July 28, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI), an independent oil and gas company (the "Company") based in Houston, Texas, today announced the kick-off of its LEI 2009-II Capital Program (the "Program"). The Program will be conducted through a joint venture with a U.S. affiliate of a European oil and gas company.
Pursuant to the terms of the joint venture agreement, the joint interest participant in the Program will take a 90% working interest in 6 (six) wells that are currently shut in or plugged and abandoned through a buy-in. The joint venture participant will fund its ratable share of costs to workover and put the wells into production. Total capital expenditures for the Program are estimated to be approximately $2.13 million. The Company will be responsible for capital expenditure associated with its 10% working interest retained in the 6 wells, and after payout, the Company's interest will revert to 20% working interest in the wells.
The Company will continue to operate the wells which are located in Gonzales County, Texas. The Company projects approximately 9 - 12 weeks will be required to complete the workover of the 6 wells in the LEI 2009-II Capital Program.
Mr. William A. Sawyer, President and CEO of Lucas Energy, said, "We are excited to be moving forward with the workover and restoration of production on these 6 wells. This allows us to complete the first part of our 2009 capital program and to finish out Phase I of our 2009 business plan. We are very pleased that we were able to attract a high caliber European company that was introduced to us by Mike King, Princeton Research."
About Lucas Energy
Lucas Energy, Inc. (NYSE Amex:LEI) is a Texas based independent crude oil and gas company that identifies, evaluates and acquires oil and gas property interests, primarily in the Austin Chalk formation of South Texas, that are underperforming or have been shut-in or plugged and abandoned. These properties are 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.