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The majority of Lucas Energy's properties are located along the
prolific Austin Chalk trend through Gonzales, Wilson, and Karnes
Counties, Texas. This area of the United States is still one of the
world's richest oil plays, with an estimated 6 billion barrels of oil
reserves.
See more at «Why Gonzales County, why Austin Chalk - The Lucas Advantage» page.
In September of 2007, Lucas Energy, Inc., acquired three new leases in
Atascosa County, Texas from an independent operator, Laura Rodenberg
Oil Company, Inc. All three leases have producing wells. The Paul A.
Foerster No.1 well is a producing oil well completed in the Edwards
formation. The well has produced over 31,000 bbls of oil since its
completion in 1983. The well is on a 75 acre lease. The Hindes No.1
well is a producing oil well completed in the Edwards formation. The
well has produced over 47,000 bbls of oil since its completion in 1984
and is on a 249 acre lease. The Matthews No.1 well is a producing oil
well completed in the Edwards formation. The well has produced almost
22,000 bbls of oil since its completion in 1983 and is on a 40 acre
lease.
Additionally, Lucas Energy acquired the Burnett No.1
lease from an independent operator. The Burnett No.1 well was completed
in 1991 and has cumulative production of more than 34,000 bbls of oil.
The lease(s) on which the well is located consists of approximately 260
acres. The well was completed in a horizontal leg reaching out
approximately 1,600 feet into the Austin Chalk formation.
Lucas
also began drilling a new horizontal leg in its Hagen Ranch No.3 well.
The well had already produced more than 12,000 bbls of oil from a
previous horizontal. The Hagen Ranch No.3 well was acquired in 2006 and
is located in Gonzales County, Texas. The well sits on a 1330 acre
lease which has room for at least two additional wells. The objective
of the company's horizontal drilling program is to exploit the multiple
pay zones and extend oilfield boundaries. Wells in the Austin Chalk are
drilled with a horizontal leg in order to contact the fractures which
contain trapped oil. Fractures are the main source of production in the
Austin Chalk formation.
In April of 2007, Lucas Energy acquired the Team Bank No.1-H well, in
Wilson County, Texas. The well was drilled in 1992 and has cumulative
production of 35,159 bbls of oil. The well is a horizontal that is
currently producing from the Austin Chalk formation. The Team Bank
property is a 240 acre lease in an area that has not been fully
developed.
Lucas also announced it had begun its work over
program of the wells acquired from the Delphic Oil and Gas company in
December of 2006. The Delphic assets represent 4 properties and 6 wells
with a total of 1172.29 acres.
In March of 2007, Lucas Energy completed its ninth acquisition with the
lease of 498 acres of land in Gonzales County, Texas. Lucas leased
498.27 acres of land in an oil, gas and mineral lease from the Griffin
Family Trust and George G. Griffin, Jr. The acreage is in the G. W.
Barnett Survey, A-110, Gonzales County, Texas. There are three active,
but shut in well bores, and two plugged wells on the lease. The lease
had produced more than 300,000 bbls of oil until it was abandoned in
1998. Lucas Energy, Inc. also has two wells on another lease from the
same family.
In January of 2007, Lucas Energy completed its sixth acquisition within
the Gonzales-Austin Chalk region. The acquisition is located in the
Gonzales Texas Austin Chalk region of the Eastern Panhandle. The
630-acre tract includes one open well bore including equipment, with
additional capacity for three more wells or four lateral well bores.
Additionally,
Lucas Energy completed its seventh acquisition within the Austin Chalk
region, west of Gonzales, Texas. Lucas Energy acquired the 160 acre
Henry E. Christian -A- lease from an independent oil and gas operator.
The Henry E. Christian lease includes an active producing well has
produced over 56,000 barrels of oil. The Henry E. Christian lease
acquisition followed a previously announced 630-acre tract on January
10th, 2007, which included one open well bore and equipment, with
additional capacity for three more wells or four lateral well bores.
Lucas
also completed its eighth acquisition with the lease of 411 acres of
land in Gonzales County, Texas. The lease is for two tracts of property
that have two shut-in wells, No. 3 and No. 1. The land is contiguous to
the company's "RVS" property. These wells historically have produced
75,000 barrels of oil and 135,000 barrels of oil, respectively.
In December of 2006, Lucas Energy acquired six oil wells located in
Gonzalez, Texas from privately held Delphic Oil and Gas, LLC. The
Delphic assets represent 4 properties with a total of 1172.29 acres.
The properties hold oil and gas producing wells in the same area as
another Lucas acquisition of 2,000 net acres with nine producing wells
which were acquired in August, 2006. The purchase of the Delphic assets
represents a total of six wells.
In September of 2006, Lucas Energy acquired two oil and gas properties
covering 127 acres: the Zavadil and the Canion Unit, located in
Gonzales County, Texas. The leases contain two shut in wellbores that
reach the Austin Chalk formation.
In August of 2006, Lucas Energy acquired nine oil and gas properties
located in the Gonzales and Karnes counties of Texas, from Wilson Oil
& Gas of Texas. The properties were comprised of over 2,000 net
producing acres, with nine producing wells and several new well
locations.
Lucas Energy also completed the acquisition and
revitalization of the Griffen Oil Unit No.2 well. located in the
Gonzales County, Texas area. The well is a straight hole completion in
the Austin Chalk formation. The well was shut in during 2000 after an
offset operator injected water into the formation and flooded out the
well, and was shut down at the time of purchase by Lucas. Lucas
Energy's revitalization team, headed by Lucas Energy Chief Operations
Officer William A. Sawyer, ran a cased hole log on the well and
evaluated the potential. His team added a large pumping unit, new rods
and pump, and replaced all of the tanks. The well responded favorably,
and has been placed online.
In July of 2006, Lucas Energy acquired and revitalized the Jessie
Perkins No. 1 well which is now consistently producing 70 barrels of
oil per day. The company had recently acquired the Jessie Perkins No.1
well from a local operator in the Gonzales County, Texas area. The well
was originally drilled by Nucorp Energy, Inc. in 1981 to a depth of
9060 feet. The Jessie Perkins No.1 well is a straight hole completion
in the Austin Chalk formation. The well was shut down at the time of
purchase. Lucas Energy's revitalization team headed by Lucas Energy
Chief Operations Officer, William A. Sawyer, ran a cased hole log on
the well and evaluated the potential. His team replaced all of the
equipment, added approximately sixty feet of perforations above the
existing perforations and acidized the well. The well responded
favorably, producing 7 barrels of oil per hour upon completion.
In June of 2006, Lucas Energy acquired a 100.86 acre oil and gas
property: the Mahlmann Lease Prospect (Big Creek Dome Area), located in
Fort Bend Country, Texas. The Big Creek Dome Field was discovered by
Gulf Oil and The Texas Company (Texaco) in the late 30's and has
produced over 7.9 million barrels of oil and more than 2 Bcf of gas
from primarily wells at above 2,000 feet.
Lucas Energy also
successfully revitalized the Kuntschik No. 2 well, which as of June 25,
2006 was producing 58 barrels of oil per day. Lucas acquired the well,
along with the Kuntschik No. 1 well, in June 2005. At the time of
purchase, the Kuntschik No. 2 well was producing low or minimal oil
volume. Lucas Energy's revitalization team, headed by Lucas Energy
Chief Operations Officer, William A. Sawyer, discovered the kick-off
point (KOP) for the lateral was too high, and consequently ran into the
shale above the Austin Chalk. The shale had swollen and sloughed into
the lateral closing off the production flow to the main wellbore. The
revitalization team cleaned out the lateral and put a liner in the
upper part of the lateral to seal off the shale interval. The Kuntschik
No. 2 well is completed in the Austin Chalk formation and is located in
Gonzales County, Texas. It has a vertical depth of approximately 8000
feet and a 1300 foot lateral extension.
In March of 2006, Lucas Energy completed an acquisition and improvement
program of the Wright #1, a 160 acre lease in Gonzales, Texas. Lucas
Energy acquired a 60% working interest in the Wright #1 and performed
all of the work to clean up the well and improve production. Rework
included replacing the down hole pump, acidizing the well, and
replacing the water pump on the natural gas engine.
In September 2005, Lucas Energy purchased a 100% working interest in
the 1100+ acre Bracero field in Zavala, Texas. The Bracero field in
Zavala, Texas has 3 producing wells and 3 shut in wells. The Bracero
Transportation Co lease was acquired by Lucas Energy Resources, Inc.,
effective September, 2005. The lease is approximately 640 acres plus
some acreage in an adjoining section. There are three producing wells
on the lease and one salt water disposal well. Minor improvements were
made to the property and the property was subsequently sold at a profit
in May of 2006.
In August of 2005, Lucas Energy acquired a 100% working interest in the
Green field lease in Baylor County, Texas, which consists of 880.7
acres and has two producing wells. Lucas Energy Resources, Inc.,
acquired the Green lease, Baylor County, Texas effective September 1,
2005. The lease has two producing wells. Production is from the Palo
Pinto formation. The wells are approximately 3000 feet in depth and
produce from shallow intervals. The Company is considering a work over
of one or both wells to increase production.
In May of 2005, Lucas Energy acquired a 100% working interest in two
unit wells (670.43 acres) located in the Pilgrim Field, in Gonzales
County, Texas. We acquired a 100% working interest in two unit wells
located in the Pilgrim Field, Gonzales County, Texas. The wells are in
two pooled units consisting of several leases. Ultimately, the net
revenue interest to be acquired should be better than 80%. The
acquisition concluded in May 2005. The Gonzales County wells produce
from the Austin Chalk formation. Both wells have lateral extensions
penetrating the Austin Chalk formation in a horizontal manner. These
wells have produced an average of 200,000 barrels of oil each since
they were drilled.
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