Lucas Sees Production Increae in 4Q10

Lucas Sees Production Increae in 4Q10

Wednesday, April 20, 2011
Lucas Energy Inc.

Lucas reported that production for the 4th quarter 2010-11 (January 2011 through March 2011) was up approximately 15% over the production for the 3rd quarter 2010-11 (October 2010 through December 2010). In the 4th quarter, Lucas had gross production of 19,898 bbls of oil as compared to 17,343 bbls of oil in the 3rd quarter. Improvement in production during the 4th quarter was due to workovers, improved trucking, and field operational changes. This is gross production from the wells and not net to the interest of Lucas (after royalty and joint venture partners interests). Also, these figures are for wells only operated by Lucas, and do not include the production from the Hilcorp operated Hagen Eagle Ford wells. Further, sales may differ from production, and will be reported in the Annual Report on Form 10-K for the fiscal year ended March 31, 2011.

"Lucas Energy has moved into production improvement after two years of increasing its Eagle Ford asset base," commented William A. Sawyer, President and CEO of Lucas Energy, who continued, "We anticipate continued improvement in our production, revenues, and bottom line."

The 3rd quarter saw slow movement of oil off of the Lucas operated leases due to a shortage of trucking as a result of the Eagle Ford activity. This shortage continued through February 2011. As a result, many wells had to be shut in until the oil was removed and sold. This condition appears to have eased up in March 2011.

Lucas Energy Up on JV With Marathon Oil Unit in Texas

Lucas Energy Up on JV With Marathon Oil Unit in Texas



Lucas Energy (LEI) is up after it says it entered into a Joint Venture agreement with Marathon Oil (East Texas) LP, a subsidiary of Marathon Oil Corporation (MRO) to develop the Eagle Ford and Buda formations in Wilson County, Texas.

The Marathon affiliate has acquired 50% of the leasehold interest rights, representing approximately 1,000 net acres (below the base of the Austin Chalk formation) held by Lucas in a majority of Lucas' leases in Wilson County, Texas.

Marathon Oil Corporation's subsidiary will be the operator of the joint venture, but Lucas will still own and operate rights above the Eagle Ford, primarily the Austin Chalk formation.