Lucas Completes Milton Hines Well in Tx.

Lucas announced that the Company has completed the Milton Hines No.1ST new lateral in Gonzales County, Texas as a pumping oil well in the Austin Chalk formation. The well tested 80 barrels of oil per day (BOPD) and 100 barrels of water per day (BWPD) (load water or drilling water not formation water) pumping. Lucas has a 100% working interest in this well.

The Milton Hines No.1ST well was a plugged and abandoned straight hole well that was re-entered in June 2010 when the lateral was drilled. The lateral was drilled out only about 800 feet when the well came in with an initial potential (IP) of over 300 BOPD. However, the ash beds in the upper part of the lateral curve caved in and caused the lateral to seal off. The new lateral was drilled to both bypass the plugged off portion of the well and to extend the lateral out to 1,999 feet in length.

William A. Sawyer, President and Chief Executive Officer of the Company, said, "The Milton Hines No.1ST horizontal Austin Chalk well should significantly add to our net production for the month of October 2011."