Lucas Shares Successful Reports on Hagen Ranch No. 3

Lucas Energy Inc., a U.S. based independent oil and gas company, is pleased to announce a progress report on its Hagen Ranch No.3 well in Gonzales County, Texas.

Lucas Energy Inc. has completed drilling a new lateral in the Hagen Ranch No.3 well, southwest of Gonzales, Texas. The old lateral to the northwest was plugged back, and the new lateral to the southeast was drilled to a measured depth of 9,507 feet. The new lateral is approximately 525 feet out to the southeast from the vertical well bore.

During the drilling of the curve, gas shows were encountered in the Austin Chalk ``B'' interval. The Austin Chalk "C" interval was the main target and encountered shows immediately. Although the plan was to drill another 1,000 feet, it was felt that enough fracturing was encountered at the current depth for a successful well. The Austin Chalk produces from fractures and not matrix porosity. Based on the seismic data, Lucas Energy Inc. still has additional fractures that may be drilled in the same horizontal at a later date.

The SITP (shut in tubing pressure) of the well was 950 psig with a column of fluid in the well. A bottom hole pressure test indicated that the fractures encountered had virgin pressure. This would indicate a virgin reservoir with no depletion.

After flowing the well to the tanks for a few days to clean up any drilling fluids, the well will be put on pump and tested.

It is the company's opinion that the well test will show this to be a successful operation.

The Hagen Ranch No.3 well was acquired in 2006 and is positioned on a 1,330-acre lease which has room for at least two additional wells.

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