Lucas Energy announced the implementation of its Summer 2009 workover program.
The crude oil price volatility over the past year has played havoc with everyone's budgeting. The strengthening of crude oil prices over the past few months has given encouragement to planning and evaluation of future workover opportunities. Lucas Energy, Inc. saw oil prices move up to over $54 per bbl in the Month of May 2009, a steady increase since the annual low of $32 per bbl in February 2009.
As a result of the steady increase in oil prices, Lucas Energy, Inc. has commenced its Summer 2009 workover program which is expected to increase its production from currently active wells that are operated by the Company. Lucas is targeting wells which could increase the current monthly production by 20-30% in the near term.
Lucas Energy, Inc. operates 34 wells in the Gonzales County, Texas area, of which 25 wells are currently producing. All but one of the wells are completed in, and producing from the Austin Chalk formation. Of these 24 wells in the Austin Chalk formation, 15 are horizontal wells. The one well not completed in the Austin Chalk formation is a straight hole well in the Buda formation.
Mr. William A. Sawyer, President and CEO of Lucas Energy, said, "The strengthening of oil prices is very timely, and gives us the opportunity to increase oil production in the second quarter of our fiscal year 2009-10".
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