HOUSTON, Nov. 2, 2006 (PRIMEZONE) -- Lucas Energy, Inc. (OTCBB:LUCE), a U.S. based independent oil and gas company today announced that during the second quarter, the company achieved a pre-negotiated financial benchmark associated with the Medium Term Note dated August 8, 2006. As a result of the financial results for the second quarter which met and exceeded both revenue and EBITDA targets, the company has executed its "performance-based call option" and has returned 500,000 shares of stock to the treasury effecting a reduction in the total shares outstanding from 28,040,013 to 27,540,013 at no cost to the company.
The company previously announced that revenues increased 359% for its second quarter ended September 30, 2006 to $435,063 and net income increased 466% to $120,206 for the same three-months ended September 30, 2006.
The complete financial results for the second fiscal quarter ended September 30, 2006 are available on Form 10-QSB at http://www.sec.gov.
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 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. 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 of potential customers to pay, and political and economic risks inherent in international trade.