Lucas Energy Successfully Completes New Horizontal Well

Lucas Energy, Inc., a U.S. based independent oil and gas company, has successfully completed the drilling of a new lateral from the Perkins Oil Unit No.1 well, Pilgrim (Austin Chalk) Field, Gonzales County, Texas. The new lateral was drilled from the plugged back depth of 8,410 feet to a new total depth (TD) of 11,340 feet and had significant oil and gas shows throughout.

The vertical depth from surface at TD is 8,541 feet. The pumping unit has been rigged up on the well and testing has begun. It is expected that it will take at least two weeks to recover the load water from drilling of the new lateral and for the well to reach its full potential of oil and gas production. The company will report initial production at that time. The new lateral was drilled on new leases recently acquired from landowners in the area.

The Perkins Oil Unit No.1 well was drilled in 1991 by Tana Oil & Gas Corporation. The original lateral was drilled to the southwest and made nearly 84,000 bbls of oil before being plugged back. The new lateral is to the northwest in a new drilling unit with new leases.

This completes the third in a series of ten wells planned in the area. The fourth well will be drilled shortly after a brief rig maintenance period.