Current Activities

Lucas Energy, Inc. is actively acquiring producing, shut in, or abandoned oil wells in the Austin Chalk/Eagle Ford/Eaglebine Trend in Texas. Lucas locates and acquires oil and gas properties with abandoned, shut in, or low producing wells. Then the wells are put back on production to create cash flow and to enhance the lease value. Finally, Lucas looks for the underlying value in the properties. If the underlying value is within its budget, Lucas develops the lease with internal capital. If the project to develop the underlying value is too large for Lucas’ budget, then the Company seeks outside joint venture partners. In the fiscal year 2011-12 (ending March 31, 2012), Lucas was a joint venture partner with several entities including: Marathon Oil Company, Seidler Oil & Gas, and Nordic Oil USA 1.

Through the third quarter of the fiscal year 2011-12, Lucas Energy, Inc. drilled one new Austin Chalk horizontal well and two new Austin Chalk laterals from older horizontal wells in Gonzales County, Texas. Currently, Lucas is drilling a second new Austin Chalk horizontal well and starting to commence drilling a third new Austin Chalk lateral from an older well. In this last quarter, Lucas anticipates drilling a fourth new Austin Chalk horizontal well and two more new Austin Chalk laterals from older horizontal wells.