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Lucas Energy Is Fulfilling The Growing Demand For Domestic U.S. On-Shore Oil
Lucas Energy, Inc. (NYSE Amex: LEI), an emerging independent oil & gas company based in Houston, Texas,
continues to dramatically increase production rates of their properties in 4 Southern Texas counties. They own
100% working interest in the majority of their 17,000 acres of oil and gas leases. Lucas operates 47 wells with
gross average daily production of 300+ BOE/day.
The Company also controls an additional 28 shut-in or plugged well bores in the Austin Chalk formation. Lucas’s
acreage is located in the middle of the new Eagle Ford trend and it is currently testing both the Eagle Ford (EF) and
Buda formations as part of the LEI Business Plan. The Eagle Ford Trend is rich in American oil and is positioned
directly beneath the Austin Chalk Formation. EF spans across 11 counties in South Texas and produces oil and gas
from 4,000 to 12,000 feet. Acreage in Gonzalez County just sold for $4,500/acre. Lucas paid just $3000-$4000/acre.
Lucas Energy continues to increase their oil production levels from year to year and quarter to quarter. Production
sales increased 1,813 bbls in the April to June Quarter – A 31% increase from the Jan. to March Quarter. June
sales are 100% above January with oil prices about the same ($71-73/barrel). One of the largest privately owned
U.S. oil companies, Hillcorp Energy Co., acquired 85% interest in 10,500 acres of Lucas’s EF leases in Gonzales
County, Texas. In June 2010, LEI has acquired an additional 9 wells in the EF/Austin Chalk that are being worked
over to restore production. In July 2010 the Company acquired 2 additional producing wells along the EF and has
100% working interest in them.
The Company has a mission to protect the environment from man-made disasters. Horizontal drilling is a technology that
allows oil extraction with less surface exposure. LEI has been utilizing laterals to improve economics, having the ability to
produce oil faster, safer and more efficiently. About 25% of domestic independent oil companies use horizontal drilling. Lucas
builds relationships with land owners to ensure fairness and protection of their property.
Lucas Energy has no debt. In 2010 they have greatly improved their cash position, INVESTORS SUMMARY
having $4 million in cash in addition to having repaid $2.2 million in debt. Having
spent $4.6 million in capital expenditures including the acquisition of 2,800 new Stock Symbol: LEI: AMEX
acres, they have both increased the Company’s leverage and strengthen their Share price: $ 1.70
position in Gonzales County. The first fiscal quarter, April-June 2010 showed a 60% Market Capitalization:
improvement in the adjusted EBITDA over the last quarter January2009-March2010. $23 Million (USD)
Shares Outstanding: 13.6 million
Oil production is expected to be unabated in Q3 2010 and Q4 in 2011. As of March
Book Value (NBV): $1.31/share
31, 2010 the undiscounted value of proved reserves was $81.7 million. The PV10
value was $47.5 million. Lucas also has leverage over other companies because it
PV 10/share: $7.42 at $ 50/bbl
has lower operating expenses on its leases. By the numbers, LEI has a very good Avg. Volume: 446,551
financial growth potential. The Company has low equipment, exploratory and lifting No Debt
costs. An increase in production, reserves and cash flow gives the company a strong Industry: Independent Oil & Gas
financial position and a significant financial advantage in the oil & gas market sector. Sector: Basic Materials
Lucas Energy, Inc.
Princeton Research, Inc. Stock Symbol: LEI
August 11, 2010
Corporate Website:
Volume 2, Issue 4 - Page 2
www.LucasEnergy.com