HOUSTON, June 5, 2008 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (AMEX:LEI), a U.S. based independent oil and gas company, today announced that it has entered into a contract with Houston Pipe Line, a division of ETC, a public energy company, to connect several of Lucas' key gas producing wells into a central metering point in Gonzales County, Texas. HPL has installed the meter and is in the process of cleaning the gathering lines to their main line in Gonzales County. The Company expects to begin putting gas through the connection point in the very near term, and recognize revenues from gas sales in the fiscal first quarter of 2009, which ends June 30, 2008.
Lucas has finished installing a natural gas gathering infrastructure to transport gas from certain of its stranded wells to the meter. This connection will enable Lucas to capture and monetize its natural gas from these wells, which are currently producing oil, through ETC's pipeline and distribution infrastructure. One of the wells being added to the system is the prolific Griffin Oil Unit No.2 well which has been one of the best producing wells in the Lucas portfolio. Lucas Energy, Inc. paid a small fee for the connection and meter, and will install several additional lateral lines to outlying wells.
"This agreement allows Lucas to get more gas to market and realize an additional cash flow stream from our producing wells," said James Cerna, Chief Executive Officer and Chairman of Lucas Energy, Inc.
About Lucas Energy, Inc.
Lucas Energy, Inc. (AMEX:LEI) is an independent crude 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 reserve base and cash flow while significantly reducing the risk of traditional exploration projects. The Company's headquarters are located at 3000 Richmond Avenue, Suite 400, Houston, Texas 77098.
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Forward-Looking Statements
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Lucas Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.