Lucas Energy, Inc. is focused on acquiring low producing, shut in, or abandoned oil wells with underlying potential. Currently, the company has acreage in the fast growing Eagle Ford Trend in Central Texas near San Antonio. Lucas Energy’s business strategy includes acquiring wells at a low cost, improving production in the wells, and developing the underlying upside potential with joint venture partners.

Lucas Energy operates forty-nine producing wells that produced an average of 194 gross and 114 net barrels of oil per day (“BOPD”) during the six months ended September 30, 2010. In total, Lucas holds interests in fifty-two producing, shut-in, and previously plugged and abandoned wellbores. The company operates all of their oil and gas properties with the exception of one property located in Sabine County, Texas.

Sales of oil increased from about 6,400 barrels in 2009 to 13,000 in 2010. Projected revenues from proven reserves are estimated to be $30 million by 2011 and over $70 million by 2015. Lucas plans to use the increased cash flow to acquire new acreage and re-introduce formerly producing wells. Also notable, prudent management has resulted in rising asset values while liabilities diminished from $6.9 million to $3.7 million.

Lucas Energy raised $6 million in new funding earlier this year, raising its percentage ownership from institutional funds to 25%. The new funding comes with additional warrants, which if fully exercised would bring the total funding to $20 million. The company plans to use the initial proceeds for drilling and recompletion activities, with any excess devoted to buying oil and gas properties with current production that can be greatly increased.