HOUSTON, Sept. 11, 2009 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE Amex:LEI) an independent oil and gas company (the "Company") based in Houston, Texas, today announced the commencement of drilling the Gescheidle No.1 well, Gonzales County, Texas, a re-entry of a horizontal Austin Chalk well.
The well was spudded on August 31, 2009 and is expected to be drilled down to total depth and completed by the end of September. The lateral in the Austin Chalk was plugged and abandoned by the original operator after drilling too far into a fault. The Company is proposing to clean out the well only a short distance into the lateral and shut off the water from lower in the lateral. The Gescheidle No.1 well offsets two other wells operated by Lucas, the Kuntschick No.1 and No.2 wells, which together have made more than 400,000 bbls of oil from the Austin Chalk formation since they were originally drilled by another operator.
This well is a part of a joint venture program involving Lucas Energy, Inc., as operator, and two other non-operator working interest owners, one of which purchased an eighty percent BPO (before payout) working interest in the subject well. Lucas operates twenty-two wells in Gonzales County, Texas. Recently, Lucas re-entered three other wells in this area, the Norris No.1 well, the Mills Oil Unit No.1 well, and the Ervin et al No.1 well. Both the Norris No.1 well and the Mills Oil Unit No.1 well have finished drilling. The Ervin et al No.1 well is still drilling.
William A. Sawyer, President and CEO of Lucas Energy, said "Lucas Energy, Inc. has drilled two wells, is drilling two wells, and has two more wells to start drilling within the quarter. We anticipate a successful joint venture with a significant increase in the gross production operated by the Company."
About Lucas Energy
Lucas Energy, Inc. (NYSE Amex:LEI) is a Texas based independent crude oil and gas company that indentifies, 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