HOUSTON, Aug. 16, 2006 (PRIMEZONE) -- Lucas Energy, Inc. (OTCBB:LUCE), an independent oil and gas company building a diversified portfolio of valuable assets in the United States, announced today that it has completed the acquisition and revitalization of the Griffen Oil Unit No.2 well, which is now producing 35-48 barrels of oil per day.
Lucas Energy CEO James Cerna, Jr. stated, "The Griffen Oil well is a perfect example of how Lucas Energy's expertise can turn around a previously shut-in well into a profitable producer of oil. This asset will result in a four-month payback to the company and is expected to add approximately $500,000 to our bottom line over the next year."
Lucas Energy, Inc. recently acquired 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.
About Lucas Energy
Lucas Energy, Inc. 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.
"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. This press release speaks as of the date first set forth above and 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 to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.